Contractual use of alternative dispute resolution

Courtroom is conventionally recognised as the place for justice. Subjecting a dispute to formal processes like litigation and arbitration is thus considered as the most natural and logical by many people. However, it is virtually impossible for disputing parties who had ruined their relationships in adversarial proceedings. Evidently a better form of dispute resolution that directs problem solving shall be employed. Alternative dispute resolution (ADR) techniques have been viewed as effective means to speedily and economically resolve construction dispute. This chapter firstly reviews some of the ADR initiatives in Hong Kong. The approaches taken in several common law jurisdictions in the use of alternative dispute resolution to deal with construction disputes are compared. In addition, the voluntary mediation procedures introduced under the Civil Justice Reform in Hong Kong is outlined. Adverse cost order is used to discourage 'refusal to mediate' and 'failing to attempt to mediate'. Nonetheless, the cost sanction may make the voluntary use of mediation less voluntary.