A multi-attribute utility model for dispute resolution strategy selection

Abstract

Disputes are inevitable in construction projects. Skills in dispute resolution should be part of the toolkit of any practitioner in a managerial position. Dispute resolution procedures such as litigation, arbitration, mediation, dispute adviser and negotiation are widely practised. However, frequently the question is how to systematically determine which dispute resolution strategy to adopt given the nature of disputes. Even though the topic of dispute resolution has been widely discussed and heavily researched, few studies have been conducted with respect to this question. A decision-making model has been developed using the analytical hierarchy process (AHP) and multi-attribute utility technique (MAUT). The model comprises four parts: selection criteria, dispute resolution strategies, collection of utility factors and selection criteria weightings. These were developed from empirical data collected through an interview survey with selected experts in the field. The model is designed to identify in a systematic manner an appropriate dispute resolution strategy for a given dispute, rather than relying on subjective decisions. The model is tested using a hypothetical scenario in which three case studies are evaluated.