ARBITRATION IN THE UK CONSTRUCTION INDUSTRY

Introduction

Where parties seek a detailed hearing, a final solution to their dispute together with a right to legal costs as an alternative to issuing court proceedings, arbitration is an option. Unlike litigation, the dispute will be heard privately and the procedure and costs are able to be more effectively controlled, however a judge in a court is free, the arbitrator is paid by the parties or by one of the parties whom the arbitrator decides must pay, normally the loser. If the dispute is uncomplicated the speed of proceedings is likely to short as there are obligations by all involved to save on costs.

Arbitration practice and procedure is governed by statute in England, Wales and Northern Ireland, the rules for which are found in the Arbitration Act 1996. It is not intended to indulge in the detailed procedures and rights that arise from the Arbitration Act 1996, however ARBICON ADR LTD are able to advise on all matters of arbitration.

Having completed an adjudication, which gives a swift and interim decision, (unless otherwise agreed) the contracting parties if they have made an arbitration agreement can proceed to arbitration for a more detailed and final determination of the dispute.


Arbitration Procedure

In order to proceed to an arbitration, it is necessary to have an arbitration agreement in writing, there are certain components required in such an agreement and again ARBICON ADR LTD are able to advise on the existence of a valid agreement or to compose an agreement for an ongoing or future contract.

If a valid arbitration agreement exists, the terms of that agreement may stipulate what the procedure is to appoint an arbitrator, if there are no terms the Arbitration Act 1996 gives a default procedure.

Once appointed, the arbitrator or arbitrators, will set the timetable and the detailed procedure for the arbitration including implementing any provisions of the arbitration agreement. This will then be followed to a conclusion when the arbitrator makes his award. ARBICON ADR LTD are able to provide an individual to act either as arbitrator or to represent a party in the process of conducting an arbitration.

The arbitrator’s award is binding on both parties and is enforceable at court under the summary judgement procedures. The award can raise complicated matters, it must be given in the prescribed form and it must be clear as what is to be enforced. The content may give rise to a challenge to set aside all or part of the award and /or make amendments. There may be difficult issues raised as to who pays the Arbitrator’s and party legal costs. ARBICON ADR LTD are able to analyse all awards, advise and represent any party on challenges to an arbitrators award.

If you would like to know more about arbitration or have an ongoing arbitration, please feel free to contact ARBICON ADR LTD to discuss any issues you may have or email advice@arbicon.co.uk.