How to further utilise mediation in the Malaysian construction industry?

Abstract

Alternative Dispute Resolution (ADR) refers to settlement of disputes "other than litigation". This includes mediation, conciliation, adjudication and arbitration, which is the available ADR in the Malaysian construction industry. However, mediation is seemed as the root of ADR due to voluntary approach and non-adversarial. The purpose of this study is to determine the application of mediation and factors to further utilize construction mediation in Malaysia. The research methodology was mix methods of quantitative and qualitative consist of cross sectional survey and semi-structured interviews. A cross sectional survey was conducted to determine the application of mediation by the target group of G7 contractors in Malaysia, data was analysed using non-parametric statistics by SPSS 14. Consequently, the selection of respondents for semi-structured interviews was performed. Out of total 231 responses from the survey of 1000 sampling frame only 20 experienced mediation and 12 were willing to be interviewed. Furthermore, semi- structured interviews were carried out to determine factors to further utilise construction mediation in Malaysia and thematic analysis was performed via ATLAS.ti 5.0 (qualitative software). Result from the survey indicates relatively low application of mediation by the G7 contractors in Malaysia. Twenty percent of the total respondents experienced dispute resolution and even smaller percentage applied mediation. Factors for underutilised was identified and results from the thematic analysis (qualitative) on the factors to enhance mediation were highlighted such as upgrading the current practice and procedure of mediation in term of time and cost, establishment of impartial and non-profit organisation mediator's decision. This research was expected to encourage policy makers and construction participants to maximise the potential of mediation as one of appropriate means of settling construction disputes by way of upgrading the current practice and procedure of mediation in order to ensure successful outcome and to provide means to settle construction disputes promptly. Thus, the parties in a dispute are able to focus on the project. As a result, saving time and money and as a result are able to benefit the end user, the organisations, society, industry, the courts and the country as a whole.