The 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. 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