1. How does the CIAC acquire jurisdiction over a construction case?

Answer: The CIAC acquire jurisdiction over a construction case when parties in a
contract had an effective agreement to submit to voluntary arbitration. To elucidate, the
CIAC acquired jurisdiction over the dispute between Federal and Power because both
parties agree to submit their dispute, whether arises before or after the completion of the
contract, or after the abandonment or breach of the same, to voluntary arbitration.
Evidently, the agreement of subject parties to submit to voluntary arbitration is embedded
in the arbitration clause of their existing contract. In this light, the CIAC has jurisdiction
over the case, incontestably.

2. What is the difference in the requirements of form between commercial arbitration

and CIAC arbitration?
Answer: In commercial arbitration, the arbitration agreement must be in writing if it is
contained in a document which is signed by the parties. Herein, the reference in a
contract toa a document containing an arbitration clause constitutes an arbitration
agreement provided that the contract is in writing. On the other hand, in CIAC
arbitration, clearly it provides that the agreement to arbitrate need not be signed by the
parties. In this light, the consent to submit to voluntary arbitration is not necessarily in
view of the arbitration clause contained in a contract.

3. What was the consequence of Federal’s non-participation in the arbitration

proceedings?
Answer: The non-participation of Federal in the arbitration result in the rendition of final
award by the arbitral tribunal in default. Hence, Federal which does not appear before the
arbitral tribunal to defend its case, Power may request the tribunal to continue the
proceedings and to make its award, wherein it occurred in the case at bar.  Absence of a
party or failure of a party to defend its case shall not constitute a bar to the proceedings. 
Moreover, before the tribunal render its award, it must satisfy itself not only that it has
jurisdiction over the dispute but also that the claim is well-founded in fact and law. 

4. Explain the significant importance of the CIAC law. Why was there a need to
establish a separate arbitral machinery with rules apart from the UNCITRAL to
settle disputes? State other possible factors.
Answer: The significance of the CIAC law is anchored in the promotion and maintaining
the development of the country’s construction industry. Herein, this law does not only
protect the interest of parties in a contract like payment defaults of employer or contractor,
but also to provide the industry with the necessary alternative dispute resolution facilities for
the speedy and equitable settlement of claims and disputes. This has been the heart of
arbitration.

There is a need to establish a separate arbitral machinery to administer specific

disputes, such as those exclusive cases covered by the CIAC law. With this, the
separate proceeding will result to a speedy and flexible process.

5. Explain: “The formalities of the contract have nothing to do with the jurisdiction of
the CIAC.”
Answer: This jurisprudence reflects the jurisdiction of the CIAC over the dispute and
over the contract of between Federal and Power. Prior, Federal contended that the CIAC
has no jurisdiction over the case because the contract was never finalized or signed by the
parties. However, established is the rule that the dispute is distinct and separate from the
contract, hence, the execution of the contracts and the effect of the agreement to submit
to arbitration are different matters. It thus follows that the signing or non-signing of one
does not imperatively affect the other. Herein, formalities of the contract were defeated.