Prior to the introduction of statutory adjudication for construction disputes, there were many vocal critics of the arbitration process which, it was argued, was far too difficult and slow.
Following its introduction, construction adjudication helped to re-establish the value of the expert decision maker selected by the parties, whose expertise is of the relevant industry or skills, rather than the law. The clear benefits of such a person or panel determining disputes are not to be underestimated.
There are other substantial advantages of arbitration, which include:
The process is not public and remains between the parties, in stark contrast to litigation.
As the process is determined by the parties, it can be adapted to suit their specific needs.
Whilst arbitration proceedings are generally not as fast as construction adjudication, they can bring disputes to a conclusion much more quickly, and often at much lower cost than litigation.
Using their own expertise, arbitrators are able to follow their own lines of inquisitorial investigation and search for the objective truths of a dispute.
Unlike the decisions of adjudicators, arbitration awards are conclusively binding upon the parties, with limited and well defined avenues of appeal.
Other considerations that can weigh heavily in favour of arbitration include its suitability to resolve disputes concerning international trade and commerce, particularly where conflicting legal systems are in operation, such as between the UK and much of the EU.
Arbitration can also be effective, when compared with court proceedings, in allowing commercial relationships to continue throughout and beyond the resolution of a dispute between closely connected parties.
For any enquiries or more information, please send an email to Mike.Smyth@orj.co.uk or call 01785 223440.