Effectiveness of Mediation in Reducing Dispute Resolution Time in Construction Projects

Abstract

Construction disputes remain a persistent barrier to timely project delivery in developing countries, where litigation continues to dominate despite its high costs and prolonged resolution timelines. This study examined the effectiveness of mediation as an alternative dispute resolution mechanism, assessed the factors influencing its performance, and evaluated stakeholder satisfaction with the process. A cross-sectional quantitative design was employed, targeting 311 construction stakeholders, of which 276 valid responses (88.7%) were obtained through structured questionnaires, which included engineers, contractors, consultants, clients, and accredited mediators, and analyzed using descriptive statistics, chi-square, factor analysis, Analysis of Variance (ANOVA), correlation analysis, and multiple regression. The findings demonstrate that mediation resolves disputes substantially faster than litigation, reducing average duration from 23.8 months to 4.2 months, an 82.4% improvement. Mediator expertise, stakeholder willingness, legal clarity, mediation cost, and project complexity significantly predicted mediation effectiveness, jointly explaining 70.4% of the variance. Stakeholders reported high satisfaction with mediation’s timeliness, fairness, and affordability, but concerns were noted regarding the enforceability of mediated outcomes. The study concludes that mediation offers a practical, efficient, and relationship-preserving avenue for managing construction disputes. The study recommends strengthening the Alternative Dispute Resolution (ADR) legal framework, enhancing mediator training, and institutionalizing mediation within construction contracts and regulatory systems to improve dispute-management outcomes.