Influence of Fairness Perceptions on Cooperative Behavior in Construction Arbitration

Abstract

Construction arbitration is characterized by incessant challenges to its awards. Although these challenges suggest dissatisfaction with the outcomes, the role of perceived fairness in influencing disputants’ cooperative behavioral reactions to arbitral awards remains unclear. To address this research gap, a qualitative multiple case study involving documentary analysis and 13 semistructured interviews of arbitrators, parties, and party representatives in five exemplifying cases was undertaken. Findings indicate that although fairness is an integral aspect of the dispute resolution process, perception of its influence on disputants’ cooperative behavior varied. While award favorability influenced perceived award fairness and consequently award acceptability and postdispute relations, perception of procedural and interactional fairness influenced the choice of arbitration as an avenue for resolving future construction disputes. Thus, the extent to which the awards were favorable to one party, based on the degree of control commanded over the process, determined disputants’ cooperative behavior. These findings are significant because they provide a nuanced understanding of how the various components of organizational justice interacted in influencing cooperative behavior in construction arbitration among the cases studied.