Ad-hoc ADR is a flexible and informal process that can be tailored to the specific needs of the parties involved. This makes it a good option for disputes where the parties are unable or unwilling to use a more formal ADR process, such as mediation or arbitration.

Ad-hoc ADR is generally less expensive than other forms of ADR, such as mediation or arbitration. It is also more flexible and informal, which can make it more appealing to parties who are uncomfortable with the formality of other ADR processes. Additionally, ad-hoc ADR is often more likely to result in a settlement than other forms of ADR, as the parties are free to negotiate their own terms of settlement.

One of the challenges of ad-hoc ADR is that it can be difficult to find a neutral third party to facilitate the process. The parties may also have difficulty agreeing on the terms of the process, such as the rules of procedure and the scope of the dispute. Additionally, the process may not be binding on the parties, which means that they are free to walk away from the process at any time.

There are a number of different types of ad-hoc ADR, including mediation, arbitration, and conciliation. Mediation is a process in which a neutral third party helps the parties to negotiate a settlement. Arbitration is a process in which a neutral third party makes a binding decision on the dispute. Conciliation is a process in which a neutral third party helps the parties to reach a mutually acceptable solution.

Ad-hoc ADR is most appropriate when the parties are unable or unwilling to use a more formal ADR process, when the dispute is relatively simple and straightforward, and when the parties are willing to compromise.