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Arbitration

Arbitration
A method to resolve differences and disputes
between two parties by a third party.
NEED:
Disputes between architect and client.
Quality of professional service
Lack of supervision
Payment of fees etc .


Arbitration
ADVANTAGES:
Resolving in courts is expensive, time consuming.
Arbitration is quicker, less expensive with possibility
of an amicable solution.
CONCILIATION
Alternative method to dispute redressal
Partly legal

Arbitration
All disputes or differences which may arise between the
Client and the Architect under Conditions of
Engagement and Scale of Charges with regard to the
meaning or
interpretation or
matter or
things done or to be done in pursuance hereof,
.such disputes and differences shall be referred for
arbitration to the Council of Architecture.
Arbitration
The arbitrator shall be appointed by the President,
Council of Architecture.
The arbitration shall be conducted as per the
provisions of the Arbitration and Conciliation Act,
1996.
The decision and award of the arbitrator shall be
final and binding on the Architect and the Client.
Arbitration
CONDITIONS
Agreement in Writing-clause In letter of appointment
Conditions of contract
ARCHITECT AS ARBITRATOR
Quasi arbitrator ON Expected matters
Provide relevant information to arbitrator.
Appear before arbitrators, independent witness




Arbitration
ARCHITECT AS QUASI ARBITRATOR
1. Error or inconsistency in drawings furnished to
contractor.
2. Issue instructions to contractor from time to time.
3. Dispute about the manner of execution of works
or provision of equipment etc.
4. Sub letting of job by contractor.

Arbitration
ARCHITECT AS QUASI ARBITRATOR
5. Materials and workmanship
6. Extension of time- 10 points , in 5 architects
decision final.
Contractor can initiate arbitration if he is
aggrieved by the Project architects decision.





Arbitration
APPOINTMENT OF ARBITRATORS
1. Named in contract itself
2. Each party nominates its own arbitrator. These
joint arbitrators will then appoint an umpire.
3. A person authorized to appoint an arbitrator.
4. A sole arbitrator selected from a panel of names
mentioned in the arbitration clause.






Arbitration
APPOINTMENT OF ARBITRATORS
1. Name should be conveyed in written-can be changed.
2. If one party does not appoint arbitrator- the other can
nominate a sole arbitrator.

ESSENCE OF ARBITRATION IS THE CONFIDENCE
REPOSED BY THE PARTIES IN THE ARBITRATORS.







Arbitration
REMOVAL OF ARBITRATORS
Can be removed only by a court of law.
1. Excess of jurisdiction
2. Misconduct- bribery, corruption, breach of duty/neglect.
3. Disqualification
4. Charges of fraud
5. Exceptional cases
Court intervenes in genuine cases only.








Arbitration








SHORTCOMINGS
1. Never resolved on time.
2. Joint arbitrators-coordination and agreement.
3. Transparency of dealings
4. One party can take the matter to the court.

HENCE CONCILIATION AS AN ALTERNATIVE.








Arbitration








CONCILIATIONS
1. Panchayat practice as role model.
2. Conciliator- person trusted by both parties.
3. No other power except persuasion.
4. Establish facts-finding common ground-conciliation.
5. No legal interventions.








Arbitration








The arbitration and conciliation bill, 1996-domestic and
international
Any aspect of arbitral award may be challenged in
court within 3 months
After that legally binding.

Appeal in court if not enforced.