The ADR system faces challenges such as inefficiency and lack of transparency. Bangladesh has a relatively new ADR system, but the country has taken steps to enhance its legal framework and develop the capability of its ADR system. 

Parties to ADR often make the mistake of thinking that the cost will be minimal; it's not. It can be very expensive when you consider that, unlike the court system, you must pay for the time of the neutrals, for the meeting/hearing room, for the service

Lack of confidence among the parties, lack of awareness regarding advantages of ADR, lack of accountability, shortage of effective and dutiful mediator in case of informal ADR (outside of court), lack of cooperation of lawyers, disconnect between rules and reality are the major legal and administrative challenges of ADR.