Mediation Procedural Rules and Their Application in the Malaysian Construction Industry: A Doctrinal Legal Research
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Abstract
Mediation has emerged as an alternative dispute resolution (ADR) method that promotes confidentiality, cooperation and open communication by encouraging parties to reach mutually agreeable outcomes without the rigid structure of litigation or arbitration. Although the non-adversarial nature of mediation is observed to have attracted younger professionals and millennials, construction practitioners appear to be unaware of what mediation entails. Moreover, inconsistencies in procedural rules and the perception that mediation lacks finality have hindered its adoption in the construction industry. This highlights the gaps in the awareness and practical engagement of mediation as a viable dispute resolution method. The current study addressed these gaps by conducting a comprehensive legal analysis with a specific focus on the legislation, procedural rules and the forms used in construction-related contracts. Employing a doctrinal legal research methodology, the study systematically dissected relevant legal documents, statutory provisions, policy guidelines and applicable case law. Through this approach, the study aimed to identify an established legal principle (i.e., the black letter law) surrounding mediation in the construction industry. The research revealed three principal findings: (1) many procedural rules have been clearly established and legally coherent, (2) certain procedural rules were ambiguous due to the inconsistencies in legal drafting or interpretation and (3) some areas of mediation law were underdeveloped and required further legal articulation. This article contributes to the understanding of mediation within the Malaysian construction industry by examining existing legal principles, identifying areas of uncertainty and clarifying ambiguities within the procedural rules. It underscores the need for increased awareness and promotion and clarification on some of the ambiguities through robust legal backing to support the growth and acceptance of mediation as a mainstream dispute resolution tool for the construction industry.
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