An Inquiry Into the Challenges Facing Arbitration Practice in the Construction Industry in Uganda a Study of Industry Players in Kampala

Abstract

This study is an inquiry into the challenges facing arbitration practice in the construction industry in Uganda. Its theme was to determine the extent to which arbitration is used to resolve construction disputes in the construction industry in Uganda, identify the challenges it faces, and identify possible strategies to address these challenges when resolving the disputes in Uganda. The study was executed using the cross-sectional descriptive research design. It then utilised simple random sampling to formulate the sample population, and relied on primary data, that was collected using the questionnaires administered to 88 respondents (4 developers, 10 contractors, 70 consultants, and 4 arbitrators) using email and WhatsApp platforms. The findings demonstrated that after negotiation, Arbitration is the second most successful alternative dispute resolution method used in the construction with 33% of the disputes encountered referred to arbitration. The main challenge faced is limited experience by the participants (arbitrators, party representatives, consultants, and parties to the contract). The study also identified concerns regarding perceptions of some respondents that were indicated as challenges. These included partiality of the tribunal, lengthy process, lack of training, lack of confidence in the proceedings, high-cost implication than earlier anticipated, incompetent party representatives, the unenforceability of the arbitral award, lack of immunity for the arbitrators, the ambiguity of the arbitration agreements and unsatisfactory outcomes. The possible strategies identified for overcoming the challenges include support from the arbitration institutions and professional bodies in the construction industry, training of arbitrators and professionals within the industry, cost and time management, support from the courts, training of practitioners to enlighten them on arbitration, correct interpretation of contract documents, among others. The study made the following recommendations; professional bodies should advocate for continuous professional development in the area of arbitration, parties should strictly follow the procedure of appointment of the tribunal and should perform due diligence on potential arbitrators, parties should follow the law when it comes to enforcement, appointment of trained and qualified arbitrators and party representatives, participants should use standard forms of contracts with clear clauses. The study identified that further research should be conducted to investigate the effectiveness of quantity surveyors as arbitrators in the construction industry in Uganda.