Construction and Engineering Contracts Arbitration

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Construction contracts often provide for the arbitration of construction and engineering disputes rather than litigation.

What is arbitration?

Arbitration is a procedure by which the parties to a dispute appoint an independent and neutral arbitrator to determine the dispute.

Arbitration is often selected in a contract as an alternative to litigation and arbitration has many parallels with litigation.

The object of arbitration is to provide a fair resolution of a dispute by an impartial tribunal.

The arbitrator will hear both sides’ evidence and arguments and
make a decision, which the parties will have agreed to be bound by.

The general procedure and the steps that will be taken in litigation and arbitration can be very similar and judges are sometimes appointed as arbitrators.

Why choose arbitration?

The parties to a dispute must arbitrate a dispute if they have a prior contractual agreement to do so, or agree to do so after the dispute has arisen.

In the absence of agreement a party cannot force another party to resolve a dispute by way of arbitration.

The main reason for opting for arbitration is that the entire process will usually be conducted in private. Court hearings usually take place in public, which makes arbitration attractive to parties wishing to prevent trade secrets or other sensitive information from entering the public domain.

The parties can appoint an arbitrator of their choice who is experienced in the relevant field, which means the process can be less costly than litigation because there may be less of a need for expert evidence although there will be other costs that would not be incurred in litigation.

Although in some circumstances arbitration can be cheaper than litigation, it can also be more expensive because the parties have to pay for the venue and the arbitrator’s fee.

What if I disagree with the arbitrator’s decision?

In certain limited instances an arbitrator’s decision can be appealed to the High Court.

How do I enforce an arbitrator’s decision?

Unless they have agreed otherwise, the decision is final and binding on both parties. In most cases a party in whose favour a decision has been made will be able to enforce the award immediately through the Courts

As Specialist Sub-Contracting is all about entering into legally binding contracts (with Contractors or Clients) you will be pleased to know that you can access a wealth of information on Streetwisesubbie.com about avoiding contractual problems and construction arbitration.

Please click here to go to the Contractual section.

If you already have a problem with a Contractor or Client or a Construction Arbitration and you need help to find a solution please check out the Dispute Resolution Section for information that may help you to resolve the situation.

Please click here to go to the Dispute Resolution section.

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