Voluntary Mediation as a Tenable Resolution Mechanism for Construction Disputes
Publication: Journal of Construction Engineering and Management
Volume 150, Issue 6
Abstract
Mediation has been promoted as a complementary alternative to traditional adjudicatory resolution methods for settling construction disputes. The use of mediation has been promoted for its time- and cost-saving advantages. The voluntary approach is also considered suitable to the spirit of disputing parties settling their own disputes by themselves and is thus considered a prerequisite design of mediation. Nevertheless, the power asymmetry between disputing parties may hinder bona fide mediation. This study examined the importance of voluntary participation in fostering collaborative mediating behaviors. The impact of power asymmetry on the use of voluntary construction dispute mediation was also explored. With data collected from mediation practitioners and the application of principal component factor analysis, constructs for voluntary participation (VP), collaborative mediating behaviors (CMB), and power asymmetry (PA) were developed. Partial least squares structural equation modeling analyses were then used to test the hypothesized relationships. It was found that (1) the practice of CMB would bring about positive mediation outcomes; (2) VP would engender collaborative mediating behaviors; and (3) PA between the disputing parties would have no significant negative impacts on voluntary attempts at mediation or the practice of CMB. These findings were validated by real mediation cases. This study contributes to construction mediation studies by affirming the importance of keeping mediation a voluntary process. With a flexible process, voluntary mediation can be a tenable option for resolving construction disputes notwithstanding the power differentials between the mediating parties.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data that support the findings of this study are available from the corresponding author upon reasonable request.
References
Abowitz, D. A., and T. M. Toole. 2010. “Mixed method research: Fundamental issues of design, validity, and reliability in construction research.” J. Constr. Eng. Manage. 136 (1): 108. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000026.
Alvarado-Alvarez, C., I. Armadans, and M. J. Parada. 2020. “Tracing the roots of constructive conflict management in family firms.” Negotiation Conflict Manage. Res. 13 (2): 105–126. https://doi.org/10.1111/ncmr.12164.
Amsler, L. B., J. Martinez, and S. E. Smith. 2020. Dispute system design: Preventing, managing, and resolving conflict. Stanford, CA: Stanford University Press.
Appelbaum, P. S., C. W. Lidz, and R. Klitzman. 2009. “Voluntariness of consent to research: A conceptual model.” Hastings Center Rep. 39 (1): 30–39. https://doi.org/10.1353/hcr.0.0103.
Aunger, J. A., R. Millar, J. Greenhalgh, R. Mannion, A. M. Rafferty, and H. McLeod. 2021. “Why do some inter-organizational collaborations in healthcare work when others do not? A realist review.” Syst. Rev. 10 (Dec): 1–22. https://doi.org/10.1186/s13643-021-01630-8.
Bader, R., J. McMahan, T. Campbell, K. Ramakrishnan, and J. Goodrich. 2022. “The asymmetry.” In Ethics and existence: The legacy of Derek Parfit, 15–37. Oxford, UK: Oxford University Press.
Baruch, Y., and B. C. Holtom. 2008. “Survey response rate levels and trends in organizational research.” Hum. Relat. 61 (8): 1139–1160. https://doi.org/10.1177/0018726708094863.
Bercovitch, J. 1991. “International mediation and dispute settlement: Evaluating the conditions for successful mediation.” Negot. J. 7 (1): 17–30. https://doi.org/10.1111/j.1571-9979.1991.tb00599.x.
Bercovitch, J. 2019. Social conflicts and third parties: Strategies of conflict resolution. London: Routledge.
Bercovitch, J., and A. Houston. 2000. “Why do they do it like this? An analysis of the factors influencing mediation behavior in international conflicts.” J. Conflict Resolut. 44 (2): 170–202. https://doi.org/10.1177/0022002700044002002.
Cao, N. 2023. “Voluntary participation as an incentive of construction dispute mediation—A reality check.” In Construction incentivization: Beyond carrot and stick, 261–288. Cham, Switzerland: Springer.
Cao, N., and S. O. Cheung. 2023. “The value of voluntary participation in construction dispute mediation.” Eng. Constr. Archit. Manage. https://doi.org/10.1108/ECAM-11-2022-1070.
Cao, N., and S. O. Cheung. 2024. “Mediators’ view on voluntary construction dispute mediation” J. Leg. Aff. Dispute Resolut. Eng. Constr. 16 (1): 05023005. https://doi.org/10.1061/JLADAH.LADR-1004.
Carneiro, D., P. Novais, F. Andrade, J. Zeleznikow, and J. Neves. 2013. “Using case-based reasoning and principled negotiation to provide decision support for dispute resolution.” Knowl. Inf. Syst. 36 (Sep): 789–826. https://doi.org/10.1007/s10115-012-0563-0.
Ceric, A. 2014. “Strategies for minimizing information asymmetries in construction projects: Project managers’ perceptions.” J. Bus. Econ. Manage. 15 (3): 424–440. https://doi.org/10.3846/16111699.2012.720601.
Chan, A. P., D. W. Chan, and K. S. Ho. 2003. “An empirical study of the benefits of construction partnering in Hong Kong.” Construct. Manage. Econ. 21 (5): 523–533. https://doi.org/10.1080/0144619032000056162.
Chebat, J. C., and W. Slusarczyk. 2005. “How emotions mediate the effects of perceived justice on loyalty in service recovery situations: An empirical study.” J. Bus. Res. 58 (5): 664–673. https://doi.org/10.1016/j.jbusres.2003.09.005.
Chen, Y., C. Yu, Y. Yuan, F. Lu, and W. Shen. 2021. “The influence of trust on creativity: A review.” Front. Psychol. 12 (Aug): 706234. https://doi.org/10.3389/fpsyg.2021.706234.
Cheung, S. O., and P. T. Chow. 2011. “Withdrawal in construction project dispute negotiation.” J. Constr. Eng. Manage. 137 (12): 1071–1079. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000388.
Cheung, S. O., H. C. Suen, and T. I. Lam. 2002. “Fundamentals of alternative dispute resolution processes in construction.” J. Constr. Eng. Manage. 128 (5): 409–417. https://doi.org/10.1061/(ASCE)0733-9364(2002)128:5(409).
Cheung, S. O., and T. W. Yiu. 2014. “The interrelationships among sources, tactics and outcomes in construction dispute mediation.” In Construction dispute research: Conceptualisation, avoidance and resolution, 337–366. Cham, Switzerland: Springer.
Cho, M., and D. Keltner. 2020. “Power, approach, and inhibition: Empirical advances of a theory.” Curr. Opin. Psychol. 33 (Jun): 196–200. https://doi.org/10.1016/j.copsyc.2019.08.013.
CIPAA (Construction Industry Payment and Adjudication Act). 2012. “The construction industry payment and adjudication act 2012, Malaysia.” Accessed June 21, 2022. https://www.cipaamalaysia.com/blog/cipaa.
Coleman, P. T. 2006. “Power and conflict.” In The handbook of conflict resolution: Theory and practice, 120–143. San Francisco: Jossey-Bass.
Cook, K. S., C. Cheshire, E. R. Rice, and S. Nakagawa. 2013. “Social exchange theory.” In Handbook of social psychology, 61–88. Hoboken, NJ: Wiley.
Costello, A. B., and J. Osborne. 2005. “Best practices in exploratory factor analysis: Four recommendations for getting the most from your analysis.” Pract. Assess. Res. Eval. 10 (1): 7. https://doi.org/10.7275/jyj1-4868.
Cutolo, D., and M. Kenney. 2021. “Platform-dependent entrepreneurs: Power asymmetries, risks, and strategies in the platform economy.” Acad. Manage. Perspect. 35 (4): 584–605. https://doi.org/10.5465/amp.2019.0103.
Davidian, E., M. Surbeck, D. Lukas, P. M. Kappeler, and E. Huchard. 2022. “The eco-evolutionary landscape of power relationships between males and females.” Trends Ecol. Evol. 37 (8): 706–718. https://doi.org/10.1016/j.tree.2022.04.004.
Edwards, A. 2011. “Building common knowledge at the boundaries between professional practices: Relational agency and relational expertise in systems of distributed expertise.” Int. J. Educ. Res. 50 (1): 33–39. https://doi.org/10.1016/j.ijer.2011.04.007.
Eisenhardt, K. M. 1989. “Agency theory: An assessment and review.” Acad. Manage. Rev. 14 (1): 57–74. https://doi.org/10.2307/258191.
Fellows, R., A. Liu, and C. M. Fong. 2003. “Leadership style and power relations in quantity surveying in Hong Kong.” Construct. Manage. Econ. 21 (8): 809–818. https://doi.org/10.1080/0144619032000174521.
Fisher, R., W. L. Ury, and B. Patton. 2011. Getting to yes: Negotiating agreement without giving in. New York: Penguin.
Folger, J. P., and R. A. B. Bush. 2005. The promise of mediation: The transformative approach to conflict. New York: Jossey-Bass.
French, J., and B. Raven. 1959. “The bases of social power.” In Studies in social power, edited by D. Cartwright, 150–167. Ann Arbor, MI: Institute for Social Research.
Gartner, S. S., and J. Bercovitch. 2006. “Overcoming obstacles to peace: The contribution of mediation to short-lived conflict settlements.” Int. Stud. Q. 50 (4): 819–840. https://doi.org/10.1111/j.1468-2478.2006.00427.x.
Gewurz, I. G. 2001. “(Re) designing mediation to address the nuances of power imbalance.” Conflict Resolut. Q. 19 (2): 135–162. https://doi.org/10.1002/crq.3890190203.
Hair, J., Jr., J. F. Hair Jr., G. T. M. Hult, C. M. Ringle, and M. Sarstedt. 2021. A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: SAGE.
Hair, J. F. 2009. Multivariate data analysis. Andover, Hampshire: Cengage.
Hair, J. F., Jr., M. Sarstedt, L. Hopkins, and V. G. Kuppelwieser. 2014. “Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research.” Eur. Bus. Rev. 26 (2): 106–121. https://doi.org/10.1108/EBR-10-2013-0128.
Hedeen, T. 2005. “Coercion and self-determination in court-connected mediation: All mediations are voluntary, but some are more voluntary than others.” Justice Syst. J. 26 (3): 273–291. https://doi.org/10.1080/0098261X.2005.10767773.
HKIAC (Hong Kong International Arbitration Centre). 2022. “Hong Kong international arbitration centre. Annual report.” Accessed June 29, 2022. https://www.hkiac.org/about-us/annual-report.
HKJ (Hong Kong Judiciary). 2023. “Hong Kong judiciary. Summary of mediation reports filed in the district court in 2022.” Accessed January 10, 2023. https://mediation.judiciary.hk/en/doc/2022_DC_EN.pdf.
HKMAAL (Hong Kong Mediation Accreditation Association Limited). 2023. “Hong Kong mediation accreditation association limited. Mediator panels.” Accessed January 10, 2023. http://www.hkmaal.org.hk/en/mp_general.php.
HKMC (Hong Kong Mediation Council). 2014. “Hong Kong Mediation council joint mediation helpline office. Research report on Hong Kong mediation service—Standard practice and procedure.” Accessed July 10, 2022. https://www.jointmediationhelpline.org.hk/pdf/Research_Report.pdf.
HKSAR DOJ (Government of the Hong Kong Special Administrative Region, Department of Justice). 2010. “Department of Justice, The Government of the Hong Kong special administrative region. Report of the working group on mediation. Construction mediation.” Accessed July 10, 2022. https://www.doj.gov.hk/en/legal_dispute/pdf/med20100208e.pdf.
Jordan, P. J., and A. C. Troth. 2021. “Managing emotions during team problem solving: Emotional intelligence and conflict resolution.” In Emotion and performance, 195–218. Boca Raton, FL: CRC Press.
Kline, R. B. 2023. Principles and practice of structural equation modeling. New York: Guilford Press.
Kteily, N., T. Saguy, J. Sidanius, and D. M. Taylor. 2013. “Negotiating power: Agenda ordering and the willingness to negotiate in asymmetric intergroup conflicts.” J. Personality Social Psychol. 105 (6): 978. https://doi.org/10.1037/a0034095.
Lee, C. K., T. W. Yiu, and S. O. Cheung. 2016. “Selection and use of alternative dispute resolution (ADR) in construction projects—Past and future research.” Int. J. Project Manage. 34 (3): 494–507. https://doi.org/10.1016/j.ijproman.2015.12.008.
Limsila, K., and S. O. Ogunlana. 2008. “Performance and leadership outcome correlates of leadership styles and subordinate commitment.” Eng. Constr. Archit. Manage. 15 (2): 164–184. https://doi.org/10.1108/09699980810852682.
Luo, A., M. Zuberi, J. Liu, M. Perrone, S. Schnepf, and S. Leipold. 2021. “Why common interests and collective action are not enough for environmental cooperation—Lessons from the China-EU cooperation discourse on circular economy.” Global Environ. Change 71 (Nov): 102389. https://doi.org/10.1016/j.gloenvcha.2021.102389.
Matthews, L., J. O. E. Hair, and R. Matthews. 2018. “PLS-SEM: The holy grail for advanced analysis.” Mark. Manage. J. 28 (1): 1–13.
Mayer, B. 2012. The dynamics of conflict: A guide to engagement and intervention. San Francisco: Jossey-Bass.
Menkel-Meadow, C. 2015. “Mediation, arbitration, and alternative dispute resolution (ADR).” In International encyclopedia of the social and behavioral sciences. Amsterdam, Netherlands: Elsevier.
Menkel-Meadow, C. 2017. “The evolving complexity of dispute resolution ethics.” Geo. J. Legal Ethics 30 (2017): 389.
Menkel-Meadow, C. 2018. “Ethics in alternative dispute resolution: New issues, no answers from the adversary conception of lawyers’ responsibilities.” In Mediation, 429–476. London: Routledge.
Michalski, M., J. L. Montes, and R. Narasimhan. 2019. “Relational asymmetry, trust, and innovation in supply chain management: A non-linear approach.” Int. J. Logist. Manage. 30 (1): 303–328. https://doi.org/10.1108/IJLM-01-2018-0011.
Molm, L. D., N. Takahashi, and G. Peterson. 2003. “In the eye of the beholder: Procedural justice in social exchange.” Am. Sociological Rev. 68 (1): 128–152. https://doi.org/10.1177/000312240306800106.
Moore, C. W. 2014. The mediation process: Practical strategies for resolving conflict. Hoboken, NJ: Wiley.
Nadler, A., and N. Shnabel. 2008. “Instrumental and socioemotional paths to intergroup reconciliation and the needs-based model of socioemotional reconciliation.” In The social psychology of intergroup reconciliation, 37–56. Oxford, UK: Oxford University Press.
Nelson, R. M., T. Beauchamp, V. A. Miller, W. Reynolds, R. F. Ittenbach, and M. F. Luce. 2011. “The concept of voluntary consent.” Am. J. Bioethics 11 (8): 6–16. https://doi.org/10.1080/15265161.2011.583318.
Newig, J., E. Challies, N. W. Jager, E. Kochskaemper, and A. Adzersen. 2018. “The environmental performance of participatory and collaborative governance: A framework of causal mechanisms.” Policy Stud. J. 46 (2): 269–297. https://doi.org/10.1111/psj.12209.
Nicholson, S. 2015. “A recipe for meaningful gamification.” In Gamification in education and business, 1–20. Cham, Switzerland: Springer.
Nyaga, G. N., D. F. Lynch, D. Marshall, and E. Ambrose. 2013. “Power asymmetry, adaptation and collaboration in dyadic relationships involving a powerful partner.” J. Supply Chain Manage. 49 (3): 42–65. https://doi.org/10.1111/jscm.12011.
Osipova, E. 2015. “Establishing cooperative relationships and joint risk management in construction projects: Agency theory perspective.” J. Manage. Eng. 31 (6): 05014026. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000346.
Poitras, J. 2005. “A study of the emergence of cooperation in mediation.” Negotiation J. 21 (2): 281–300. https://doi.org/10.1111/j.1571-9979.2005.00064.x.
Quilty, L. C., J. M. Oakman, and E. Risko. 2006. “Correlates of the Rosenberg self-esteem scale method effects.” Struct. Equation Model. 13 (1): 99–117. https://doi.org/10.1207/s15328007sem1301_5.
Raven, B. H. 1964. Social influence and power. Los Angeles: California Univ.
Ringle, C. M., M. Sarstedt, R. Mitchell, and S. P. Gudergan. 2018. “Partial least squares structural equation modeling in human resource management research.” Int. J. Hum. Resour. Manage. 31 (12): 1617–1643. https://doi.org/10.1080/09585192.2017.1416655.
Ringle, C. M., M. Sarstedt, and D. W. Straub. 2012. “Editor’s comments: A critical look at the use of PLS-SEM in ‘MIS Quarterly’.” MIS Q. 36 (1): iii–xiv.
Rothman, J., and M. L. Olson. 2001. “From interests to identities: Towards a new emphasis in interactive conflict resolution.” J. Peace Res. 38 (3): 289–305. https://doi.org/10.1177/0022343301038003002.
Rouhana, N. N. 2011. “Key issues in reconciliation: Challenging traditional assumptions on conflict resolution and power dynamics.” In Intergroup conflicts and their resolution: A social psychological perspective, 291–314. New York: Psychology Press.
Shrestha, A., J. Tamošaitienė, I. Martek, M. R. Hosseini, and D. J. Edwards. 2019. “A principal-agent theory perspective on PPP risk allocation.” Sustainability 11 (22): 6455. https://doi.org/10.3390/su11226455.
Silbey, S. S., and S. E. Merry. 2018. “Mediator settlement strategies.” In Mediation, 183–208. London: Routledge.
SIMC (Singapore International Mediation Centre). 2015. “Singapore International Mediation Centre. Annual Report 2014.” Accessed July 10, 2022. https://siac.org.sg/wp-content/uploads/2022/06/SIAC_Annual_Report_2014.pdf.
SMA (Singapore Mediation Act). 2017. “The Singapore Mediation Act 2017.” Accessed July 10, 2022. https://sso.agc.gov.sg/Act/MA2017#:∼:text=An%20Act%20to%20promote%2C%20encourage,mediation%20and%20for%20connected%20purposes.
Sorabji, J. 2014. English civil justice after the Woolf and Jackson reforms: A critical analysis. New York: Cambridge University Press.
Sourdin, T., T. Burke, and B. Li. 2019. “Just, quick and cheap? Civil dispute resolution and technology.” Macquarie Law J. 19 (Nov): 17–38. https://doi.org/10.3316/agispt.20200929037458.
Tidwell, A. 2001. Conflict resolved? A critical assessment of conflict resolution. London: A&C Black.
Wall, J. A., Jr., J. B. Stark, and R. L. Standifer. 2001. “Mediation: A current review and theory development.” J. Conflict Resolut. 45 (3): 370–391. https://doi.org/10.1177/0022002701045003006.
Weller, S. W. M. 2005. “Self-Determination and autonomy.” In Autonomy, self governance and conflict resolution: Innovative approaches to institutional design in divided societies, 1. London: Routledge.
Willaby, H. W., D. S. Costa, B. D. Burns, C. MacCann, and R. D. Roberts. 2015. “Testing complex models with small sample sizes: A historical overview and empirical demonstration of what partial least squares (PLS) can offer differential psychology.” Personality Individual Differ. 84 (Oct): 73–78. https://doi.org/10.1016/j.paid.2014.09.008.
Williamson, O. E. 1991. “Strategizing, economizing, and economic organization.” Supplement, Strategic Manage. J. 12 (S2): 75–94. https://doi.org/10.1002/smj.4250121007.
Wolf, R. 2019. “Taking interaction seriously: Asymmetrical roles and the behavioral foundations of status.” Eur. J. Int. Relat. 25 (4): 1186–1211. https://doi.org/10.1177/1354066119837338.
Wood, S., M. Van Veldhoven, M. Croon, and L. M. de Menezes. 2012. “Enriched job design, high involvement management and organizational performance: The mediating roles of job satisfaction and well-being.” Hum. Relat. 65 (4): 419–445. https://doi.org/10.1177/0018726711432476.
Xiang, P., J. Zhou, X. Zhou, and K. Ye. 2012. “Construction project risk management based on the view of asymmetric information.” J. Constr. Eng. Manage. 138 (11): 1303–1311. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000548.
Yiu, T. W., S. O. Cheung, and C. H. Cheung. 2007. “Toward a typology of construction mediator tactics.” Build. Environ. 42 (6): 2344–2359. https://doi.org/10.1016/j.buildenv.2006.05.005.
Yu, J., D. M. Kilgour, K. W. Hipel, and M. Zhao. 2015. “Power asymmetry in conflict resolution with application to a water pollution dispute in China.” Water Resour. Res. 51 (10): 8627–8645. https://doi.org/10.1002/2014WR016257.
Zacharia, Z. G., N. W. Nix, and R. F. Lusch. 2011. “Capabilities that enhance outcomes of an episodic supply chain collaboration.” J. Oper. Manage. 29 (6): 591–603. https://doi.org/10.1016/j.jom.2011.02.001.
Zhu, L., and S. O. Cheung. 2021. “Toward an equity-based analysis of construction incentivization.” J. Constr. Eng. Manage. 147 (11): 04021148. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002176.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 150 • Issue 6 • June 2024
Copyright
© 2024 American Society of Civil Engineers.
History
Received: May 31, 2023
Accepted: Dec 5, 2023
Published online: Mar 29, 2024
Published in print: Jun 1, 2024
Discussion open until: Aug 29, 2024
ASCE Technical Topics:
- Arbitration
- Asymmetry
- Benefit cost ratios
- Business management
- Construction engineering
- Construction management
- Construction methods
- Data analysis
- Dispute resolution
- Engineering fundamentals
- Financial management
- Legal affairs
- Mathematics
- Methodology (by type)
- Practice and Profession
- Research methods (by type)
- Symmetry
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.