Streamlining Resolution Processes in Public Project Disputes

This paper addresses the pressing issue of resolving contractual disputes in public construction projects, emphasizing the need to understand these challenges and implement effective resolution strategies in Malaysian public works. A comprehensive literature review identifies key barriers to implementing first-tier dispute resolution mechanisms, particularly within the Malaysian Public Works Department (PWD). Concerns related to impartiality, professional competence, and the adoption of alternative dispute resolution (ADR) methods are examined, along with opportunities for amicable settlements through negotiation, mediation, and the Dispute Resolution Committee (DRC). The study applies qualitative research methods, including purposive sampling, semistructured interviews, and adherence to ethical research protocols. Key challenges in the effectiveness of first-tier dispute resolution under PWD contracts include impartiality concerns, limited legal and contractual knowledge, difficulties in timely decision-making by the officer empowered (OE) within the required 45-day period, and administrative inefficiencies. Negotiation is found to be the most suitable method for early dispute resolution, whereas mediation and DRC are less effective. The proposed framework recommends revisions to PWD procedures to better align with arbitration principles, clearer guidelines to uphold natural justice, the establishment of specialized support committees for the OE, and enhancements to the negotiation process to support informed and timely decision-making.