An enhancement of the application for fast track arbitration in the Malaysian construction industry / Nur Khodijah Muhammad Fadhlullah Ng

The increase number of construction disputes in the last few decades has marked the
important role of the construction industry. Arbitration has become continuously
popular and strengthened its position to settle within stipulated time compare to
litigation. However, the arbitral process takes longer time, which leads to fast track
arbitration. Due to the weaknesses of traditional arbitration process, the use of fast track
arbitration is seen as an efficient approach in resolving construction disputes, as part of
the strategy to limit conflict between the contracting parties. However, the utilisation of
fast track arbitration in the Malaysian construction industry is low compared to United
Kingdom, France, Singapore and Hong Kong. Therefore, this research aims to establish
the enhance application of fast track arbitration in the Malaysian construction industry
with the support of three objectives. The objectives are to identify the issues on existing
fast track arbitration in the Malaysian construction industry; to explore the application
of fast track arbitration in the Malaysian construction industry and to establish
recommendations to further enhance the application of fast track arbitration in the
Malaysian construction industry. Hence, the qualitative approach was adopted. This
research executed semi – structured interviews to twenty (20) construction arbitrators
to meet the aim of the research. The collected data was analysed with CAQDAS
(Computer Assisted Qualitative Data Analysis Software), Atlas.ti Version 8 through the
process of content analysis and thematic analysis. It can be summarised that the fast
track arbitration process offers by the arbitral institution is inadequate in terms of
competency to meet the increased number of the construction disputes. Besides, by
viewing on its application, the fast track arbitration has found ineffective in terms of its
application due to lack of enforcement from the responsible parties. Thus, this research
is intended to develop enhanced application of the fast track arbitration through the role
of arbitral institution. By adopting this approach, the role of arbitral institution as the
body that responsible to manage construction disputes could be relied upon. As the
responsible body has clear procedure, the adoption of fast track arbitration in
construction disputes by the arbitrators shall be effective in this sense. Apart from that,
awareness of the existing fast track arbitration is another crucial issue that requires
attention. Combination roles of the arbitral institution and the arbitrators could assist in
determining preferable seat of the arbitration proceedings. As a conclusion, the outcome
of this research is essential in ensuring the quality improvement of Alternative Dispute
Resolution (ADR) in Malaysia.