Assessment of construction dispute resolution in Ethiopian somali regional state road projects: a case study on road projects in the region

Abstract

The construction industry has been a paradoxical leader in both dispute occurrences and dispute resolution systems for many years. While this may or may not be an enviable position, the industry has managed to develop and adopt many unique ways to address the potential risks of disputes. Additionally, many of these concepts and systems, including partnering, realistic risk allocation, and dispute review boards, and stepped negotiations, have been successfully applied in other industries. However, the justification for implementing these procedures has been based primarily upon contractual requirements, governmental regulation, court order, limited previous experience. Despite being an industry keenly focused on quantitative results, frequently fail to analyze the actual costs associated with dispute occurrences. This study assessed the construction dispute resolution mechanism in Ethiopian Somali Region Road Construction Industry. It has identified the causes that lead to construction dispute in the road sector; determined the most frequent causes of dispute; and analyzed its current dispute resolution mechanisms. Multiple methods such as questionnaire, in depth interviews, case documents review, and literature review were the techniques and methods used in collecting and analyzing data on the causes of disputes and the current dispute resolution mechanisms. Closed-ended and open-ended questionnaires as well as interviews were conducted among employers, contractors and consultants and their representatives. The questionnaires were completed by 65 construction participants. Relative Importance Index was used to rank the most frequent causes of dispute. Results show to have five major categories of disputes which are design-related, contractor-related, owner-related, contract-related, and external factors ranked from frist to fift, respectively. Under each of the major categories, sub-causes of disputes were identified and ranked according to its relative importance. Overall, there were twenty three (23) factors found under all these major categories.The top three causes of dispute were design errors, inadequate/incomplete specification, and quality of design (all are under design-related disputes), respectively; while one of the leasts factors is fragmented structure of the sector. The Dispute Resolution Mechanisms currently used in the road construction industry of Somali region are Amicable Settlement (Negotiation), DRE, Arbitration (Litigation), and “others” not disclosed by respondents. ADR is to a certain extent, effectively used in contracts in the construction industry. Negotiation is initially most frequently used in resolving disputes in road construction projects in Somali Region. However, parties cannot resolve the issue through Negotiation thereby resorted to Arbitration (Litigation). Arbitration is the final stage of dispute management in road construction sector and arbitration proceedings resemble to regular court litigation Various but specific recommendations were forwarded to major construction stakeholders to minimize or avoid disputes. Such as disputes can be reduced by checking that the contract documents are in place. Avoid making general statements, and instead set out a complete list of specifications, drawings, questions and answers, and others that apply to the project