Arbitration As A Means of Resolving Construction Disputes

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Arbitration As A Means of Resolving Construction Disputes: Still Fit For Purpose? Synopsis

Henry Essam

This paper considers whether arbitration is suitable for resolving disputes within construction contracts. Unlike most other countries around the world, the UK is unique in the fact it has a Specialist court to deal with issues related to these issues, it is called the Technology and Construction Court. This court benefits from distinguished judges with years of industry experience, (Fletcher, 2013). It is rare to have a court devoted to this and there are regularly construction disputes referred to them.

What is Arbitration?
Arbitration is a technique of settling a dispute out of court where the parties to the dispute refer it to one or more parties, known as the Arbitrators, by whose decision they agree to be bound.

Benefits
There are many benefits to arbitration, namely, neutrality, confidentially and enforceability.

Neutrality is a key factor to arbitration as some firms may not like the idea of going to court with another company in their home country, whereas arbitration is a neutral path in which there is no preference to either side despite where either party is from or where the dispute took place. Although the UK’s judiciary system is highly regarded internationally, (Fletcher, 2013), some may believe there is still a degree of favouritism.

Confidentiality remains important because a great many clients do not wish to expose their disputes, thier financial interests and, quite possibly, theirs failings to public scrutiny.

There are parts of the world, e.g. Russia, where it is impossible to in force a ruling by an English court, it is important for some firms to have a form of arbitration that can be enforce...

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A well known arbitrator reported that during a recent case, he was receiving in excess of 10 letters a day from the counsel for either party. If those lawyers, or their clients, were subject to cost sanctions at the end of proceedings they would be much slower to engage in such disruptive and unhelpful behaviour in the future (Fletcher, 2013).

Conclusion

Arbitration still has much to commend as a means of resolving construction disputes. In Many situations, it is the only game in town. Sensibly conducted and properly administered, it can be flexible, effective, efficient and responsive to the needs of its users. It is the responsibilities of the users to ensure that it remains this way (Fletcher, 2013).

References

Fletcher, N. 2012. Arbitration As A Means of Resolving Construction Disputes: Still Fit For Purpose?, s.l.: Society of Construction Law

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