Assessing the effectiveness of arbitration in resolving construction disputes in Uganda

Abstract

This report explores how effective arbitration is in solving disputes in Uganda’s construction industry. As construction projects in Uganda keep growing, so do the conflicts between contractors, clients, consultants, and other players. Common disputes include issues with payments, poor quality of work, delays in completing projects, and misunderstandings. These conflicts can cause major setbacks like cost overruns, broken relationships, and project delays. Arbitration has been gaining popularity as a way to resolve these problems outside of court, but its actual success in Uganda needed a closer look. The study focused on professionals in the construction industry, including contractors, developers, legal experts, and consultants. 52 people were surveyed to find out their experiences and views on arbitration. The results showed that most people have dealt with arbitration before and believe it is more effective than traditional court cases in some ways. They liked that arbitration is usually faster, more private, and allows parties to choose experts who understand construction. However, many also raised serious concerns. The biggest challenges included biased or unfair arbitrators, not enough trained professionals, delays in getting results, high costs, and limited awareness of how arbitration actually works. Some people also felt that it’s hard to enforce arbitration decisions, especially when courts get involved. Interestingly, people who have been in the industry for a long time were more critical of arbitration than those who are newer to the field. This suggests that real-world experience may reveal more flaws in the process than theory alone.