A Study on the Selection of Adjudication to Resolve Dispute in the Malaysia Construction Industry

Lai, Pei San (2021) A Study on the Selection of Adjudication to Resolve Dispute in the Malaysia Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Disputes in the construction industry are inevitable due to conflicts arising between various parties in construction projects who have different perceptions and bear different interests. The ability to identify proper ways to resolve disputes plays an important role in the industry today. Besides the traditional dispute resolution through litigation, Alternative Dispute Resolution (ADR) such as mediation, arbitration and adjudication has been developed with the aims to increase the speed and cost effectiveness of dispute resolution mechanism. Different ADR is available in the Malaysian construction industry but adjudication regime is the only statutory scheme. This research is carried out to identify the current state of ADR, highlight the criteria governing the selection of adjudication as an ADR through analysis on comparative characteristics and study the effectiveness of adjudication in resolving payment disputes in the Malaysian construction industry. The methodologies that apply to this research start with using a literature review to point out the relevant background, statistics and facts from past studies and reports. This is followed by constructing questionnaire forms based on the stated literature review and distributing the forms to the relevant parties. Data collected are analyzed using descriptive and inferential analysis. The findings revealed that ADR is common in the industry and the stakeholders have an optimistic view that adjudication is the most popular ADR. Adjudication, being the most preferred ADR, does not have the highest score in all selection criteria, but it is an all-round ADR in overall. Generally, adjudication is categorised as an effective ADR that reduce time and cost to resolve dispute and being a swift decision solution of dispute. The results obtained have answered the research question. In conclusion, this study acts as a useful reference to the industry players to understand the practice of ADR, especially the performance of adjudication in the Malaysian construction industry.