Dispute Resolution

Any Dispute of whatever nature arising out of or in relation to this Agreement shall in the first instance be attempted to be resolved by way of Adjudication in accordance with Construction Industry Development Act No.33 of 2014 Clause 51 with the Adjudication procedure.

1. If the parties so desire any Dispute relating to a Contract for Construction Works, if it is not provided for in the contract, may be settled through conciliation or mediation by the Authority.
2. A party to any contract relating to an Identified Construction Work, if unable to settle any Dispute by Conciliation or Mediation by the Authority may refer such Dispute for Adjudication.

Mediation

Mediation is commonly practicing Alternative Dispute Resolution method in construction industry. When we consider experience in worldwide has shown that mediation facilitates a high settlement rate and most people are satisfied with the outcome of the mediation. However, the current experience of mediation in the Sri Lankan construction industry is not much popular when compared to the other ADR methods.

According to the Construction Industry Development Act No.33 of 2014 Clause 50, CIDA has been given the Authority for the settlement of disputes through conciliation or mediation.

Mediation is a voluntary process in which a trained and impartial third party called a mediator. The mediator helps the both parties in dispute to reach an amicable settlement that is responsive to their needs and acceptable to each sides.

The parties meet together with the mediator and each party will have the opportunity to explain their position and their desired relief. The mediator listens both sides and then attempts to resolve the dispute in a mutually agreeable manner.

Mediation is non-binding process. It means that a decision or resolution that is reached in the mediation cannot be legally enforced. It is rather a suggested course of action that the parties must both agree to follow. If one party believes that the proposed resolution is unjustified, that party can simply leave the mediation and pursuer alternate ways to resolve the dispute. A mediator does not produce an order or a ruling. He or she simply offers opinions and suggestions toward resolution.

But mediation have lot of advantages and it is listed below.

• More time and cost efficient process than the other ADR methods
• Parties may avoid the tension, Conflict and risk in the adversarial court system
• Mediation can start before any litigation or at any stage during the process of litigation
• Help to maintain a continuing relationship between both parties
• The settlement terms can be kept private and confidential