Effective Management of Construction Disputes in India

Abstract

Disputes are often the major cause behind delay in construction projects. Resorting to the legal system to resolve disputes is often impractical due to the associated time and cost constraints, adversely impacting the progress of construction projects. A more effective alternative for dispute resolution is arbitration.

Recognizing the importance of preventing disputes, this research advocates for novel mechanisms tailored for the Indian construction sector. These proposed mechanisms encompass the appointment of a relationship facilitator, the establishment of a joint office or good office, and a combination of both. The central aim of introducing these mechanisms is to enhance communication between key stakeholders in construction projects, namely the client (promoter) and the contractor (developer). By fostering better communication, the escalation of claims or issues into disputes can be mitigated, ensuring the smooth completion of projects. Importantly, the applicability of these dispute prevention mechanisms extends beyond the construction sector, making them versatile tools for dispute avoidance in various industries.