Influence of arbitration on dispute resolution in the construction industry: a case of Nairobi county, Kenya

Abstract

The purpose of the study was to investigate the influence of arbitration on disputes resolution among construction industry within the Nairobi County. The objectives of the study were: To establish the influence of liberty in the processes of Arbitration on dispute resolution within the construction industry, To establish the influence of flexibility in arbitration processes on dispute resolution within the construction industry , To determine the influence of a neutrality in arbitrator in resolving disputes within the construction industry , To determine how privacy in arbitration influence disputes resolution within the construction Industry. The study adopted survey research design where respondents were required to describe their experiences on Arbitration to resolve disputes arising between the different parties involved in construction industry. The target population of the study was the senior construction participants who included architects, quantity surveyors and construction Managers, 600 who partner with the Architecture Association of Kenya, Institute of Quantity surveyor and Chartered Institute of Arbitrators in Kenya respectively practicing in Nairobi County. Simple random sampling method was used to determine the sample by using 10% of the population to give a sample size of 60 construction participants. In addition a mixed model research which involved qualitative and quantitative methods was applied and primary and secondary data was used in the analysis. A semi structured questionnaire was used to gather primary data while the secondary data was gathered by a review of existing literature on the factors influencing arbitration in the successful resolution of disputes in the construction industry. The completed questionnaire was coded and entered into SPSS version 20 for presentation. The findings of the study indicated that liberty in arbitration through the selection of an arbitrator and having a representative during the hearings influenced successful dispute resolution. The study also outlined the influence of flexibility in arbitration through the use of acceptable language and rules in dispute resolution particularly in the construction industry. Neutrality of an arbitrator in arbitration by very minimal appeals on the award issued influence in successful dispute resolution. The study recommends that the construction industry should adopt more of the arbitration process due to its outstanding characteristics like liberty, flexibility, neutrality, and privacy in solving its disputes so as to reduce the costs and time that are associated with the court processes and thus resolving the conflicts faster so as to ensure timely completion of the projects.