Dispute Resolution, Conciliation and Adjudication
What is Dispute Resolution, Conciliation and Adjudication?
Dispute resolution refers to the processes used to settle conflicts without relying on drawn-out litigation. In South Africa, conciliation and adjudication are two recognised methods under the wider umbrella of Alternative Dispute Resolution (ADR). Conciliation brings in a neutral facilitator who helps the parties identify issues, clarify misunderstandings, and work toward a voluntary settlement. Adjudication, by contrast, involves a neutral decision-maker who hears both sides and delivers a binding determination, which can be enforced if necessary.
These processes are designed to be faster and more cost-effective than court proceedings, while keeping matters private. Conciliation can preserve business relationships by encouraging cooperation, while adjudication provides finality when a dispute requires a clear and enforceable outcome. Both methods can be adapted to different types of disputes, from contractual and commercial disagreements to governance and compliance issues.
The Conciliation Process
Conciliation is a voluntary process where the parties agree to involve a neutral conciliator to help resolve their dispute. While the conciliator cannot impose a decision, they play an active role in guiding discussions, clarifying issues, and suggesting possible solutions.
- Agreement to conciliate – Both parties must consent to use conciliation.
- Appointment of a conciliator – A neutral professional is jointly selected or appointed by an ADR body.
- Exploration of issues – The conciliator helps the parties define the dispute, identify key interests, and focus on constructive dialogue.
- Proposals for settlement – Unlike mediation, the conciliator may suggest terms or give expert input to bridge gaps.
- Settlement agreement – If consensus is reached, the outcome is recorded in writing. Once signed, it becomes binding and enforceable.
Conciliation is especially useful where businesses want to preserve working relationships, as it encourages collaboration rather than confrontation.
The Adjudication Process
Adjudication provides a faster, more formal way to resolve disputes when parties need a clear and enforceable decision. Unlike conciliation, the adjudicator actively hears both sides and issues a determination that carries legal effect.
- Referral to adjudication – A dispute is referred under a contract clause, statutory framework, or agreement between the parties.
- Appointment of an adjudicator – A neutral adjudicator is appointed, often with subject-matter expertise relevant to the dispute.
- Submission of evidence – Each party submits documents, statements, and arguments for the adjudicator’s review.
- Adjudicator’s consideration – The adjudicator analyses the evidence, may request clarification, and ensures both sides are fairly heard.
- Decision issued – A written determination is delivered, which is binding unless challenged within a limited timeframe.
- Enforcement – The decision can be made an order of court if one party fails to comply.
Adjudication is widely used in commercial and construction disputes, as it delivers quick, decisive outcomes while avoiding the delays and costs of full litigation.
Differences between Conciliation and Adjudication
| Feature |
Conciliation |
Adjudication |
| Nature |
Informal, negotiation-focused |
Formal process with structured procedure |
| Third party role |
Facilitator (conciliator) guides discussion |
Decision-maker (adjudicator) issues determination |
| Outcome |
Voluntary agreement between parties |
Binding ruling enforceable by court |
| Commonly used in |
Labour and commercial disputes |
Construction and commercial contract disputes |
| Legal effect |
Not binding unless written and signed as a settlement |
Binding decision with legal force |
Outcomes of Conciliation and Adjudication
- Conciliation: If the parties reach agreement, the terms are written into a settlement agreement. Once signed, this agreement is legally binding and enforceable in court if needed. If no settlement is reached, the dispute may continue to arbitration, adjudication, or litigation.
- Adjudication: The adjudicator issues a written decision that is binding on the parties. This ruling carries legal effect immediately and can be enforced through the courts, unless it is overturned or revised through a later process (such as arbitration or court proceedings).
When to Use Conciliation vs Adjudication
Conciliation is best suited where preserving a working relationship is important — such as shareholder disagreements, supplier partnerships, or employment-related disputes. It creates space for dialogue and compromise, helping parties move forward together.
Adjudication, on the other hand, is chosen when a clear and enforceable decision is needed quickly. It is widely used in construction and commercial contract disputes, where delays or uncertainty carry significant financial risk. The adjudicator’s ruling provides finality, giving businesses the certainty they need to move on.
VDM Attorneys – Your Partner in Conciliation and Adjudication
Choosing the right path between conciliation and adjudication can determine how effectively a dispute is resolved. VDM Attorneys guide clients in assessing which process is most appropriate, represent them throughout proceedings, and ensure that any settlement or ruling is properly recorded and enforceable. Our role is to protect your commercial interests while aiming for outcomes that are practical, binding, and strategically sound.
Contact VDM Attorneys to discuss the most effective dispute resolution strategy for your business.