What is dispute resolution and what methods are available?

Dispute resolution is the process through which parties involved in a contract, seek a solution on a claim that one party has made against the other.

If there is a requirement for dispute resolution, there are a few methods that can be followed as described below and selection of one over the other can be affected by some of these factors:

  • Formality – does this process need to be formal or can a solution be easily found with only some assistance from a third party?
  • Dispute nature – how serious is this issue? Is it worth pursuing in a court or the overall legal expenses outweigh the value of the dispute?
  • Quality of relationships – how good is the relationship between the parties and are they willing to damage it by taking it to a court? Or are they both willing to settle this in a positive manner and carry on with the project?
  • Contract provision – what is provided as a dispute resolution method in the contract?
  • Decision speed – can you afford the time for a decision when you know for example that one of the methods requires a lot of time until a decision is reached?
  • Decision enforcement – does the decision need to be enforced or all parties will act accordingly to get things resolved without the need for any form of pressure?


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