Dispute resolution practices in the construction industry in Palestine

Abstract

The construction industry is subject to more conflicts, disputes and claims more than many other industries. Construction industry in Gaza Strip suffers from the misunderstanding of dispute resolution management as a number of factors affect the development of dispute resolution practice. Over the last years, there has been a break down in the relationship between parties involved in the construction process which affected the development and expansion of the construction sector. The current unstable political condition has also contributed to the increase in the number of construction disputes. The objective of this paper is to examine the current dispute resolution practices in the construction industry in the Gaza Strip. The results of this study indicated that litigation method is rarely used in resolving disputes as it depletes more time and cost, and can cause side conflicts between owners and contractors. In the Palestinian environment, choosing court to resolve disputes is considered by many as an aggressive act, unlike western culture. Alternative dispute resolution methods are mostly used in Gaza Strip. The results also showed that most contractors used informal negotiation in resolving disputes with owners. It is advisable to organize regular training programs in order to increase contracting parties’ knowledge concerning dispute resolution systems and how to deal with conflicts in the most efficient and practical way.