ADR

Question 1

What does ADR stand for?

Answer 1

Alternative dispute resolution

Question 2

Why is ADR used?

Answer 2

Avoids lengthy and expensive litigation. It is flexible and cost effective and can bring a speedy conclusion to a problem.

Question 3

What 3 ADR techniques are used? (formal)

Answer 3

Adjudication
Arbitration
Litigation

Question 4

What is Adjudication?

Answer 4

Adjudicator considers the evidence as whole and makes a decision which is binding to all parties. It is widely used within the construction industry. doesn’t require all evidnace to be presented at once unlike litigation etc.

Quick and cost effective - gives an answer within 28 days

Question 5

What is Arbitration?

Answer 5

Parties agree to a third party (the arbitrator) for dispute resolution
Bound by the arbitrator’s decision

Cheaper and quicker the. Litigation
Acts a middle ground 60day process

Question 6

What is litigation?

Answer 6

Court - Last resort
legal right
Very expensive

Question 7

Name two Informal ADR’s ?

Answer 7

Negotiation
Mediation

Question 8

What is Mediation?

Answer 8

Appointment of independent third party (mediator)
Helps disputes
Voluntary process and all parties have to agree for mediation to go ahead.
Not binding.

Question 9

What is Negotiation?

Answer 9

Getting two parties to reconcile differences and establish areas of agreement, settlement or compromise.