Resolving Construction Disputes by Mediation: Hong Kong Experience

Abstract

This paper reviews the state of the art of modern mediation processes and presents the experience of integrating mediation and arbitration to resolve disputes in Hong Kong's construction industry. Mediation, the principal mode of resolving disputes in ancient China, may have originated in Confucian philosophy, which stresses harmony and compromise. Resolving construction disputes using an adversarial approach such as arbitration is considered to be in opposition to the maintenance of a harmonious relationship between the two parties. The modern arbitration process may duplicate a litigation proceeding, leading to procrastination and cost escalation. The attention of the paper is focused on various dispute‐resolution alternatives such as mediation, which can provide for both time and cost savings. Besides, it is strongly favored by those in the industry that disputes be resolved within the construction industry itself. Hence, mediation is believed to have promising prospects in this field.