As we are advancing towards the beginning of an era where technology has evolved, different sectors and the construction sector is no exception. From automated, self-executing contracts to AI-augmented robots tracking work progress, it is fascinating how innovations in technology may change the impact construction dispute resolution process and disruptions.
In the construction industry, with long projects, disruptions and delays result in payment withheld or refused to be paid at all. These problems can be mitigated by using smart contracts and Blockchain technology. Technology is not only changing the way we communicate but also the way we resolve our disputes. On that note, the article gives a highlight on the prospects of these technologies in the construction dispute resolutions.
What does the future hold for construction dispute resolution?
The technology of smart contracts is starting to change the legal proceedings of the construction industry. A smart contract is a computer-based protocol that is intended to facilitate, enforce, and verify the negotiation of a contract. This technology integrates e-commerce platforms into the contract law by ensuring credible transactions without the involvement of a third party. These transactions are not only traceable but also irreversible.
These technologies are sure to reform the whole idea of Online Dispute Resolution (ODR). ODR has the potential to go beyond just providing audio-visual technology to the courtrooms. With technologies like AI, smart contracts, and Blockchain, ODR can challenge the conventional court role by making the “court” a service which can be availed by people in the remote areas. It can formulate dispute resolution based on technology and data.
Reduction in the scope of disputes
The use of Blockchain technology and smart contracts in the construction industry would definitely help in the resolution of many contract issues by reducing the scope of disputes by using a more refined and smoother contract administration and automated payment method without a third party. The payment method is made more secured by the use of cryptocurrencies and a distributed ledger under the Blockchain technology.
This technology not only ensures a traceable payment option but also the construction dispute can be navigated back to the party’s administration failure of the contract. The smart contract technology provides a platform that is not only transparent but also unbiased with no room of human error. With these smart contracts and its embedded rules, the lawyers would no longer need to get the client’s attention for decisions, as the outcomes would be presented autonomously following the data present on the contract.
The smart contract would limit human input, thus reducing the chances of human error and influence in the contract dispute resolution. The option of automated payment would ensure digital actions in case of a failed performance or disruption. The increased transparency will lead to a reduction in the scope of the dispute in the construction industry. To understand more about how you can incorporate this technology into your business, you may opt for a delay expert that can help you with a secure platform for construction contracts to limit the possibilities of disruption.
How Blockchain is going to revolutionize the construction industry?
Blockchain technology is a decentralized and distributed ledger that records financial assets. In simpler words, it is a list of records known as blocks that are stacked together and secured by using end-to-end encryptions. Information in Blockchain is connected together; that is why this technology is very secure and resistant to any malware.
Blockchain is becoming popular in the construction industry as it is managed by peer-to-peer networks, meaning that if someone attempts to alter transaction records in one block, he would have to do so with all the subsequently generated block. Hence, it is impossible to cheat when it comes to Blockchain distributed ledgers. This technology will help in the construction dispute resolution by providing an undisputed record of all the facts and data that is impossible to reinterpret.
How modern technology is transforming traditional dispute resolution?
The present, traditional dispute resolution scenario appears to be quite time-consuming with different factors affecting the outcome. Revolutionizing the courts with these promising technologies would ensure an effective, timely, and inexpensive dispute resolution that is justified with no room for human error or influence.
Some examples of technological reforms can already be seen in different areas across the world. For example, in UAE, the Dubai International Financial Centre’s tribunal hears claims on a daily basis ranging up to 100,000 euros. The parties have to file the claim electronically and may appear before court from anywhere in the world. The courts have their case management systems, but they still have to incorporate Blockchain to be able to enforce smart contracts.
The future of AI-based dispute resolution
The society has changed and evolved to embrace technology; the question here is how dispute resolution professionals leverage that technology for assisting dispute resolution? You can consult a delay expert regarding the current situation of the dispute resolution in Dubai, and how you can use technology towards your advantage.
With the new digital age, technology has taken the world by storm, but dispute resolution systems have not been keeping pace with this trend. Justice remains a lengthy and costly matter, which is sometimes inaccessible to some in remote locations with limited resources. There is still a long way to go, but these technologies indeed provide a promising future of construction dispute resolution.
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