Q: What is multi-tier dispute resolution?

Ans: Multi-tier dispute resolution is an approach to speed up the dispute resolution process by attempting a solution even before the commencement of arbitration proceedings. Mandatory pre-arbitration steps like mediation, negotiation, conciliation, or expert determination are combined with arbitration in the form of a multi-tier dispute resolution clause. Having such a clause in the contract also places the onus on the parties to go through these alternative procedures before commencing arbitration. Suppose the parties decide to opt for arbitration without trying these alternative procedures, the arbitration award's implementation could run into problems owing to noncompliance with the procedure set in the multi-tier arbitration agreement. The advantage of having such multi-tier dispute resolution clauses is that should these procedures yield a result, the settlement between the parties - besides being cheaper than arbitration proceedings - can then be captured in the form of a settlement award made by the arbitrator; which is a procedure permitted as per the Arbitration and Conciliation Act, 1996 (ACA).

Conciliation: 
Multi-tier dispute resolution comprises of arbitration with pre arbitration process like mediation,  conciliation,  negotiation and expert determination. 
So parties should avail of the facilities of mediation, conciliation ,negotiation and expert determination which is multi-tier dispute resolution process before going to arbitration just like going to arbitration before going to court. 

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