Alternative dispute resolution: Suggestions for application in the Turkish construction industry

Dispute is a common occurrence in the construction industry, and litigation, the formal way of settling disputes, is time-consuming and expensive besides several other drawbacks. This has led the authorities and the industry to seek and establish non-judicial dispute settlement methods in quest for more cost-effective and swifter solutions that prevent deterioration of business relations between the parties. Such alternatives to litigation are generically called alternative dispute resolution (ADR) methods. The ADR approach has been widely adopted by the EU, and considering Turkey's EU accession process as well as the need for low-cost and non-bureaucratic methods of dispute resolution, a genuine need exists to identify the legislative and the institutional pre-requisites for adoption and practise of ADR methods in the Turkish construction industry. Based on the conceptual framework proposed by Esman, the fundamental criteria are developed and formulated for the institutionalization of ADR in the Turkish construction industry in accordance with EU directives. This study aims to be a timely contribution to the process of the establishment of ADR in the Turkish construction industry, and the fundamental criteria set forth in this study are contemplated to serve as basis for an implementation model to be developed in subsequent studies.