There has been a recent increase in emphasis by the Federal Government on using alternative dispute resolution methods to resolve contract disputes. These methods are normally less expensive, faster, less intimidating and more responsive to the underlying problems of the dispute. Alternative dispute resolution is not effective for all disputes. Situations in which alternative dispute resolutions would be effective are identified. Additionally, the characteristics and advantages of alternative dispute resolution are discussed. The current legislation concerning the Government's usage of alternative dispute resolution is the Administrative Dispute Resolution Act of 1990. The specific components of the Act are reviewed. The conventional dispute resolution process, and its disadvantages, are presented for comparison purposes.