ADR (alternative dispute resolution): definition and example
Any way of settling a dispute without going to court, such as negotiation, mediation, adjudication or arbitration.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Read this alongside the Pre-Action Protocol for Construction and Engineering Disputes.
Alternative dispute resolution describes several processes with different effects. Negotiation and mediation seek agreement, while adjudication and arbitration involve decisions by a third party. Choosing a process depends on urgency, enforceability, evidence, cost and the agreement between the parties.
Organising the disagreement through a claim viability review can help identify a proportionate route. Check any contractual procedure before committing to a process.
Worked example
The facts
Two businesses disagree about the value of an unfinished decorating package.
What happens
They exchange a short schedule of agreed and disputed items.
They consider whether a facilitated settlement discussion could resolve the remaining differences.
What this shows
The process is chosen around the dispute, rather than assuming every disagreement needs the same formal procedure.
Sources
- Pre-Action Protocol for Construction and Engineering Disputes, second edition. Ministry of Justice.