Professional Documents
Culture Documents
Society of Construction
Arbitrators
Tuesday 1 July 2008
2 elements:
Engineer’s decision
Aribitration.
… either the Employer or the Contractor may within 90 days after receiving
notice of such decision … require that the matter shall be referred to an
arbitrator …
The award of the arbitrator shall be final and binding on the parties.
Clause 67 amendments.
Clause 67 amendments
Major innovation
Introduction of Amicable Settlement stage
Sub-clause 67.2.
Sub-Clause 67.2
Amicable Settlement
Where notice of intention to commence arbitration as to a dispute has been
given in accordance with Sub-Clause 67.1, the parties shall attempt to settle
such dispute amicably before the commencement of arbitration. Provided that,
unless the parties otherwise agree, arbitration may be commenced on or after
the fifty-sixth day after the day on which notice of intention to commence
arbitration of such dispute was given, even if no attempt at amicable settlement
thereof has been made.
Clause 50.4
Formal notice of arbitration must be given to the other party, and where
required to the appropriate arbitration body, no later than 84 days after the
issue of the Final Certificate of Payment.
Engineer’s decision
Engineer’s decision
(Reference to arbitration)
Arbitration
“Those who make agreements for the resolution of disputes must show good
reasons for departing from them … having promised to take their complaints to
the experts and if necessary to the arbitrators, that is where the appellants
should go. The fact that the appellants now find their chosen method too slow
to suit their purpose is to my way of thinking quite beside the point”.
(per Lord Mustill).
Clause 6.1(a) “If any dispute or difference of any kind whatsoever shall arise
between the Owner and the Contractor … the parties shall seeks to resolve
any such dispute or difference by mutual consultation”.
Clause 37.1 Any dispute between the Employer and the Contractor …
shall be referred to the arbitration and final decision of a
person to be agreed by the parties …
SIA Clause 38
upon the agreement of both the Employer and the Contractor, the
Parties may refer their dispute … for mediation under the Mediation
Rules of the SIA.
44.4 “No matter shall constitute or give rise to a dispute unless it has
been referred to the Project Manager”
44.6 “The parties shall attempt in good faith to negotiate a settlement
of any dispute or difference”
44.7 “If a dispute cannot be resolved by negotiation the parties may
by agreement refer it to mediation”
45.1 “Any dispute which has not been settled shall be referred to and
finally resolved by arbitration.”
“there were few referrals. The DRB made six binding decisions, with only one
case being taken to arbitration. The relatively low number of referrals suggests
that the existence of the DRB deferred the referral of disputes and it may be
that it encouraged the settlement of matters between the parties without further
recourse to third party intervention”.
Keith Brandt
Chartered Institute of Arbitrators Conference,
Hong Kong 2002.
Sub-Clause 20.5
“Despite the criticisms that have been levelled at Sub-Clause 20.5 (amicable
settlement of disputes) it can provide a valuable opportunity for the parties to
arrive at a negotiated resolution of the dispute before proceeding to a costly
formal determination through arbitration”.
Dale Bracken
International Construction Law Review 2006
Dispute Boards
Dispute Review Boards.
“A DRB has certain psychological advantages over formal adversarial dispute
resolution: e.g. early venting of opinions and emotions before impartial experts, thus
defusing personal antagonisms at an early stage and not allowing them to fester; a
conciliatory atmosphere producing Recommendations that are not compulsory (but can
be ignored only at considerable risk); quick resolution of disputes so that the parties put
the disagreement(s) behind them promptly and retain focus on the principal goal of both
parties – the successful completion of the project”.
“The Dispute Review Board system does work!”
Gordon Jaynes
International Construction Law Review, 1993
Dispute Boards
“the DRB procedure is now very popular in large-scale infrastructure projects,
two very high profile examples of its use being on the Channel Tunnel and
Hong Kong Airport projects …”
“The DRB is set up at the beginning of the project, and through regular site
visits, is involved from day one in the project. It therefore becomes an inherent
part of the project, and thus will be in a very good position to assist in the
speedy resolution of disputes as and when they arise”.
Rohan Shorland, Journal of the Chartered
Institute of Arbitrators 1999.
Dispute Boards
“they … are in fact better than arbitration. Not only do they work well, but they
indeed work faster, cheaper and in a much less contentious manner than
arbitration tribunals”.
Dispute Boards
“DRBs are perceived as comparing favourably with both ad hoc mediation and
the UK statutory adjudication scheme”.
Dispute Boards
Examples of use cited by Brandt.
Channel Tunnel – UK
Channel Tunnel Rail Link – UK
Vasco da Gama Bridge over Tagus – Portugal
Athens Mass Rapid Transit – Greece
LHDA Dam and Transfer Gallery – Lesotho
Maeslant Water Barrier – Netherlands
Extran Hydro Development – PRC
Xiaolangdi Multipurpose Project – PRC
Longtan Hydro Development – PRC.
Dispute Boards
1995 World Bank makes DBs mandatory for all IBRD financed projects
over US $50 million.
Dispute Boards
DRB – Recommendations.
DAB – Decisions.
DB – Hybrid – issues recommendations unless decisions requested.
Unlike most forms of dispute resolution where a third party neutral or tribunal is
appointed once a dispute has arisen, the DRA is appointed at the
commencement of a project, generally well before any disagreements have
come to a head, thereby promoting dispute avoidance … the most significant
attribute of the DRA system is perhaps its ability to prevent disputes from
arising.
Med-Arb:
Glencot Development and Design Co v Ben Barrett & Son (Contractors) Ltd. [2001] 80
ConLR 14
A mediator “will or may have to listen to arguments and hear things which may be
completely irrelevant to the dispute in the adjudication but which might be prejudicial to
its determination.
… Mr Talbot was correct in making it clear to parties that what he might be doing was a
departure from adjudication and in getting their agreement to it. Such agreement was
essential. Of course an agreement in advance, even if a formal written agreement, may
not be effective in depriving a party of its right to question a later decision on the
grounds of apparent or actual bias”.
(per HH Judge Humphrey Lloyd QC.)
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