Arbitration

Arbitration is an Alternative Dispute Resolution (ADR) method, serving as an alternative to court proceedings. In construction, Arbitration aims to resolve disputes fairly and impartially, focusing on efficiency and reduced costs for all participants, whether this is the Employer, the Main Contractors or Subcontractors

How does Arbitration work in construction disputes?

In Arbitration, each party is given a fair opportunity to present their case. Arbitration in construction disputes is resolved based on material facts, documents, and construction law principles. Arbitration procedures and practices are governed by statutes, varying by state or country.

What is IC&R’s role in Arbitration?

IC&R specializes in guiding clients through the Arbitration process. We offer expertise in setting up Arbitration agreements and executing Arbitration proceedings. Our team, with over 40 years of experience and experts certified by AIQS, tailors the Arbitration approach to each specific dispute, aiming to save time and costs.

Is Arbitration mandatory in construction disputes?

There is no statutory right to Arbitration in construction. For a dispute to be referred to Arbitration, parties must opt into it via a written clause in the construction contract.

What are the benefits of Arbitration in construction disputes?

Arbitration offers several benefits:

• Confidentiality: Unlike court proceedings, Arbitration is private.
• Expertise: Parties can choose an Arbitral Panel with relevant construction experience.
• Cost Recovery: Arbitration allows for recovery of legal costs, with the Arbitral Panel deciding on cost allocation.
• Speed: The pace of Arbitration can be faster than court proceedings, though this depends on the Arbitral Panel.
• Finality: Arbitration awards are final, legally binding, enforceable, and challenging to appeal.

When is Arbitration advisable in construction disputes?

Arbitration is suitable for disputes requiring a final determination, such as post-adjudication scenarios. Arbitration is also an option in non-commercial construction contracts, provided an Arbitration clause is included. Subject to certain criteria (e.g., whether the contract is for construction work) the parties have a right to statutory adjudication.

How does one start the Arbitration process in construction?

Arbitration begins with an Arbitration clause in the construction contract, which will outline the format, procedure and location of the arbitration. If we are engaged early enough, we can help draft these clauses into the contract. Equally, if your contract already has an Arbitration clause, we can help guide clients through the ensuing Arbitration process, prepare the communications and present the materials required.

How does IC&R support clients during Arbitration proceedings?

IC&R offers comprehensive support during Arbitration proceedings. We assist in preparing cases for Arbitration, managing the proceedings, and ensuring clients are well-represented and advised throughout the Arbitration process.

Is Arbitration always the best solution for construction disputes?

Although the use of Arbitration is now limited due to other ADR methods being preferred in the construction industry, there are still many benefits to using Arbitration to resolve your construction dispute.

• Unlike Court proceedings, the dispute is held privately and confidentially.
• The parties are free to agree on the Arbitral Panel to be appointed, and therefore can ensure relevant experience in the construction matter.
• Legal costs can be recovered, the Arbitral Panel decides who pays the costs of their fees and the legal costs of the action, depending on any cost agreement or law in respect of “costs following the event”.
• The speed of Arbitration can be an advantage; however, this will depend on the way the Arbitral Panel conducts the Arbitration.
• The Arbitration Award(s) are final, legally binding, enforceable, and difficult to appeal.

How does IC&R ensure effective Arbitration outcomes?

Our team at IC&R ensures effective Arbitration outcomes by leveraging our extensive experience in construction disputes, understanding of Arbitration law, and commitment to representing our clients’ interests comprehensively and professionally in the Arbitration process.