Arbitration is a method for resolving disputes and is particularly prevalent in international construction and engineering contracts. Serving as an alternative to litigation, it is a private form of dispute resolution which is often chosen for its efficiency, flexibility, and the expertise of the arbitrators in the relevant field.
The parties agree to submit their dispute to an impartial arbitration tribunal of one or more arbitrators to provide a final, legally binding solution with limited grounds for appeal.
For the process to be used, the construction contract must include an arbitration clause where the parties agree in advance to refer disputes to arbitration and be legally bound by the decision (award) of the arbitrators. Alternatively, the parties can agree to use arbitration after the dispute has arisen.
The parties are free to agree the arbitrator(s), but in the absence of an agreement they may need to seek a nomination from an arbitral institution. The arbitration will normally be governed by legislation in the relevant jurisdiction, but the arbitration agreement may also prescribe a particular set of rules which will set out the procedure to be followed. The parties will have an opportunity to present their case, and the arbitrator(s) render(s) a legally binding and enforceable award after considering the evidence and arguments.
International arbitration is a preferred method for resolving cross-border construction and engineering disputes since awards are recognised and enforceable in over 150 countries under the New York Convention.
Our Chartered Arbitrators have experience of acting in domestic and international arbitrations. They are on the RICS select panel of construction and engineering arbitrators, CIArb Arbitration Panel and have been appointed by the ICC and DIFC-LCIA (now DIAC) in relation to international arbitrations. Examples of arbitrations include: