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Evaluating the Effectiveness of Various Disputes Resolution Mechanism in Procurement of Goods and Works

Makinde O. Philip, Prof. B. A. Ozurumba and Prof. E. C. UBANI

Abstract

This study evaluates the effectiveness of alternative dispute resolution mechanisms, as Arbitration, Mediation, Adjudication, and Negotiation, in the procurement of goods and works in Nigeria. The primary objective is to assess how these mechanisms influence procurement efficiency, contract execution, and stakeholder satisfaction. Procurement disputes continue to hinder project completion, with inefficiencies in resolution processes contributing to delays and cost overruns. The study was conducted across key procurement hubs in Nigeria, utilizing a mixed-methods approach that included surveys and semi-structured interviews. A total of 390 valid responses were obtained from procurement professionals in both the public and private sectors through a structured questionnaire. Descriptive statistics revealed that while Arbitration and Mediation were generally regarded as effective, respondents expressed concerns about the time, cost, and enforceability of Arbitration, which had a mean score of 3.576. Mediation recorded a strong agreement with a mean of 4.000, reflecting its cost-effectiveness and ability to preserve relationships, although Negotiation received the highest overall score at 4.006, indicating its broad acceptance as a primary mechanism for resolving lower-stakes procurement disputes. Adjudication was also viewed positively for its role in mitigating delays, with a mean score of 3.933. The overall effectiveness of dispute resolution mechanisms yielded a strong mean score of 4.047. Hypothesis testing using a one-sample t-test confirmed that all mechanisms significantly contribute to resolving procurement disputes, while ANOVA results showed no statistically significant difference in perceived effectiveness across the mechanisms. Thematic analysis supported these findings, emphasizing the need for stronger institutional support and policy reforms to enhance enforcement. The study concluded that the success of dispute resolution mechanisms depends on contextual

Keywords

DisputeResolutionProcurementArbitrationMediation.

References

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