Critical Components of an Effective Disputes Management System

The main aim of dispute resolution is to resolve the conflict effectively and efficiently. A few things that you must keep in mind while planning dispute resolution include seeing the interest, needs, and objectives of the parties. It also envisages the process that is best for all parties involved in the construction project.


We know that three types of processes are called for in disputes management, namely, mediation, arbitration, and litigation. Aside from the three, which we will catch a glimpse of in brief, there are a few aspects that we will consider as well in this write-up. So, let’s delve deeper.


Three basic types of dispute resolution procedures

Key aspects for successful disputes management


To start with, we will consider the first one.


Three basic types of dispute resolution procedures


The three basic procedures that successfully resolve any dispute in a construction project include mediation, arbitration, and litigation.


Mediation- In mediation, we know the aim is to become a neutral party to assist the parties to come to agree on a common point. The main work of the mediator is to explore the possibilities of the parties involved and to identify their interests. This procedure is nonbinding, sustainable, and voluntary.


MTDRC or Multi- tier dispute resolution clauses- We know that there are many parties in a construction project. And when there is a dispute, parties try to opt for a procedure that will optimize the time, save on costs and enhance efficiency. It also depends on the nature of the project. The dispute resolution usually ranges from a MTDRC to DAB or referring the case to a dispute adjudication board. However, there are certain conditions that must be fulfilled. For instance, the MTDRC must imply that the pre-arbitral steps are usually time bound. It must ensure that the right of all the parties involved are well balanced.


Arbitration- The arbitrator is entrusted with the responsibility of resolving the dispute. After having heard all parties, the arbitrator will present his evidence and offers a binding decision.


Litigation- Civil litigation is perhaps the most common type of disputes management. Lawyers are the dominant ones to play the role of dispute resolution and arrive at a settlement agreement, which is held during the pretrial period.


Having discussed the three main or basic types of successful dispute resolution processes in common, let us take a look at the second point.


Key aspects for successful disputes management

Before you can select a process for resolving the dispute, there are a few key aspects that you must consider so that it works in the best interest of all parties. These are as follows-


    • Goals – What are you looking forward to achieving from the process? Which process or procedures will work best for attaining your goals?


    • Timing or the procedural state of dispute – Has the litigation process been initiated? And if it has been initiated, what is the stage? It may be mentioned here that many times consensual dispute resolution process works well.


  • Cost and formality – What is the nature of the process you prefer? Should it be a flexible one or a formal and rigid one?


Remember, you must think of a litigation process only under the following circumstances-


  • You cannot do without a legal proceeding.
  • The state of mistrust among the parties in the construction project is so severe that there is no other way that the parties involved are willing to settle the dispute.


Last but not least, a so-called rights-based decision will be effective in resolving the dispute. Interestingly, we at ContractSquare have handled very complex scenarios and emerged successful for our clients every time.

For more information on how we may offer our assistance to you in dispute resolution, you can reach us at or call +91 9903023893.

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