The use of online alternative dispute resolution in the resolution of South African construction disputes

Abstract

One of South Africa's key employment industries and socio-economic drivers, the construction industry, is largely impacted by the detrimental effects of delayed conflict resolution, consequently leading to poor service delivery, cost overruns and project infeasibility, amongst others. This is one of the reasons why it lends itself well to having the disputes arising within the industry, to be resolved by means of alternative dispute resolution. However, technology has permeated numerous economic processes and offers alternative methods for communication, information exchange and dispute resolution. This is referred to as online alternative dispute resolution (OADR) from an alternative dispute resolution perspective. OADR is a relatively new and growing practice in South Africa, with limited authoritative directives. In light thereof, the research methodology draws on analyses of secondary data, both quantitative and qualitative, with specific emphasis on the opportunities and obstacles experienced in construction industries' practices in Hong Kong, Australia, and Singapore (Focus Countries) – all in comparison with the basic principles implemented in the South African construction sector. In South Africa, the practice of virtual court has expedited the growth in OADR, and although we can acknowledge the cost and time effectiveness of OADR in the various Focus Countries, there is an indication that this practice could possibly exclude necessary parties if they lack the adequate technology, tools or connectivity required to participate in virtual dispute resolution. This study explores the ways in which OADR may possibly remedy the current gaps in the basic alternative dispute resolution (ADR) principles evidenced by ADR practitioners in the construction industry in order to determine how OADR can assist with the resolving disputes arising in the South African construction industry.