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This paper seeks to shed some light on the various negotiated claims settlement processes available to the construction industry, which include negotiation, conciliation and mediation, contrasting them with third party claims determination processes ranging from Expert Determination, Dispute Review Boards, Dispute Review Panels, adjudication through to arbitration, which between them offer alternatives to litigation.4 In particular, this paper commends the adoption of adjudication as a useful vehicle for the early determination of construction disputes.5 Nonetheless, it will be demonstrated that all the various forms of ADR have much to offer both the domestic U.K. and the international construction industry.6 However, ADR is still in the evolutionary stage. It means different things to different people. Great care needs to be taken to chose a process that is right for the parties and right for the construction project at hand.7 In order to make a choice the parties need to understand each of the processes they are choosing from, how they operate and what they can and cannot do for them. If the parties fail to make a choice then claims will inevitably go to law.8 Even if the parties choose an ADR process it is unlikely that lawyers will be kept out of the process altogether. In fact, it will be demonstrated that settlements, which do not pay due regard to legal rights and liabilities, are unlikely to be satisfactory. ADR can however provide an alternative to the legal process. Assuming the settlement achieved is satisfactory this will be of benefit to the industry in that it should result in savings in both time and in settlement costs. Replacing adversarial court settlement with a consensual settlement process can also do much to preserve business relationships between the parties to the dispute. ADR has much to offer the construction industry but it is not a panacea for all ills and will not work without the co-operation of the parties. This paper is one small step towards empowering those in the industry to make informed choices as to the dispute resolution processes they wish to adopt to govern construction projects they engage in.

Unassisted Negotiated Dispute Settlement categorises the bargaining process undertaken by the parties to a claim arising out of a commercial agreement, to broker a settlement of the dispute. 14 It is to be hoped that this is the most common method used to settle construction claims. Whilst no specific mechanism or formula is required to institute settlement negotiations many modern contracts contain a “good faith” negotiation clause, requiring any dissatisfaction with performance under a contract to be communicated to the other partner, usually in writing and frequently in a specified format. A process is set out for negotiations to be conducted within a certain period of time. Often once an issue is raised a solution can be found quickly, especially if the issue is raised promptly. This ensures that minor issues which the other party is not aware exist are not referred to lawyers and prevents mountains being ...