The United Kingdom saw a return of adjudication (contract or ad hoc) as the most common dispute resolution method, replacing party-to-party negotiation which dropped to second place in 2019. Arbitration replaced mediation as the third most common resolution method in the United Kingdom. The recent introduction of some low value / low cost arbitration schemes, i.e. the Chartered Institute of Arbitrators' (CIArb) Business Arbitration Scheme, could be providing a boost in the use of arbitrations domestically within the United Kingdom.
While the industry should welcome further forms of lower cost dispute resolution, it is concerning that no early resolution methods appear in the top three. In recent years there has been a concentrated effort to promote the benefits and use of mediation, such as the Construction Industry Council's Model Mediation Agreement and Procedure, and other early alternative dispute resolution methods in construction and engineering disputes because of their typical lower time and cost benefits. Unfortunately, this is not reflected in this year's results.
One encouraging finding from the survey responses is that the most effort is being spent on the mitigation of disputes, which is a shift in effort from the resolution stage reported in 2019. However, respondents still reported the efforts spent in avoidance of disputes remains third, behind mitigation and resolution. 58% of respondents reported that settlement prior to proceedings (i.e. after a dispute had crystallized) was the most common form of early resolution.
Survey respondents ranked owner/contractor willingness to compromise as the most important factor in increasing mitigation/early resolution efforts. Ranked second is contract mandated early resolution forms such as mediation, disputes review boards. This suggests that where parties are unable to compromise, enforced early dispute resolution methods, such as the avoidance processes implemented by Network Rail and Transport for London, or tiered dispute contract clauses may be effective.