Exploring the Effects of Alternative Dispute Resolution (ADR) Implementation on Cost and Time Efficiency in Nigerian Construction Projects: A Comprehensive Analysis

Abstract

Construction projects still experience significant cost and time overruns, dispute being one of the cause. Alternative dispute resolution (ADR) methods have been developed to reduce the negative impact of disputes. While research works have covered several areas, the focus seems to skip determining the impact of the ADR methods on cost and time. Determining the significance of the gains in cost and time where ADR methods were used is vital. This research therefore assesses the impact of ADR methods on cost and time of projects. In achieving this, the extensions in the cost and time of projects where ADR methods were used were assessed to establish how significant. The ADR methods widely employed in construction dispute settlement including the main subjects in dispute were assessed. The nature of the relationship between time and cost extension under ADRs was analyzed. Seven ADR methods that have been applied in Nigeria from literature formed a set of questionnaires to generate data through online means. Descriptive statistics, correlation analysis and bar charts were used for the analysis. The research found the most widely used ADR methods for dispute resolution in Nigeria to be negotiation and arbitration methods. Cost and time extended during disputes resolution remain significant having an overrun impact factors of 0.70 and 0.69 for cost and time respectively. Claims, poor quality work and slow work progress on site are the main subjects during construction dispute. Strong positive correlation exists between time and cost extension during ADR process. It is recommended that dispute avoidance be emphasized rather than to rely on ADR. To avoid dispute, stakeholders must be wary and make contingency plans against claims, work quality and work progress as key factors often causing construction dispute. Further research should consider using larger data or using a case study approach. Also, cost and time overruns of projects that used ADR and those that used litigation can be compared.