What is ADR?


The traditional method of resolving a dispute, is to go to court. There has been a drive in recent years, particularly since the introduction of the Civil Procedure Rules, to find quicker and more flexible ways of resolving a dispute. ADR (alternative dispute resolution) is just that. It literally means any method of resolving a dispute other than litigation through the courts.

Ideally disputes should be resolved through negotiation, with each party prepared to give a little to achieve a settlement. Sometimes it helps to employ a professional representative such as a surveyor or lawyer who is experienced in the subject matter of the dispute, and maybe more skilled at negotiating.

Some methods of dispute resolution have been around for some time. Arbitration has traditionally been used in shipping cases and many commercial leases will also have an arbitration clause, particularly to resolve a rent review dispute.

Another method of solving a dispute is for an independent expert to give a binding determination. An expert will be someone experienced in the subject matter of the dispute, who uses his or her own knowledge and experience to give a decision.

If negotiation fails to find a solution, you may want to consider using mediation. A mediator will not impose a settlement on the disputing parties but will help them come to an agreement which can then form a binding contract.

Although adjudication has been around for some time, it now refers to a very specific type of dispute resolution under construction contracts. The adjudicator gives a decision within 28 days of the dispute being referred to him or her.

There are other types of ADR. This summary is intended to give a brief explanation of some of the main types to help you negotiate your way round this rather confusing area.