The potential of bias in multi-tier construction dispute resolution processes

Disputes have been identified as the inevitable happening in highly competitive construction contracting business. Amicable dispute resolution is welcomed by the construction industry. With major changes in Hong Kong construction dispute resolution landscape, wider use of alternative dispute resolution (ADR) methods has been advocated. As such, multi-tier dispute resolution (MTDR) processes incorporating ADR have become the design protocol for dispute resolution provision in contracts. Moreover, the use of multi-tier dispute resolution (MTDR) does not guarantee dispute can be resolved without the need to resort to formal proceedings. In some cases, multi-tier resolution processes may cause unintended obstacles against settlement. The possibility of biases creeping in may be one of those. The aim of the study is to examine the potential of bias on the part of the disputants as well as the neutral third party in MTDR processes. Among the types of bias reviewed for this study, anchoring appears to be the most likely bias that may creep in during MTDR processes. The concept of anchoring bias and its characteristics are therefore examined. The study points to further study on the means to alleviate the influence of anchoring bias in MTDR.