Arbitration is a process that can be beneficial for engineering projects as it allows for the constructive and efficient resolution of disputes. This article examines what arbitration is, how it works, and how it can be used to resolve common disputes in the engineering sector. It describes the benefits of using arbitration as a dispute resolution mechanism and why it is often the preferred choice of civil engineers.
What does arbitration mean?
It is a dispute resolution process used to resolve disputes between two or more parties. It is often used in construction disputes as it provides a constructive and efficient way to resolve these disputes.
Commercial disputes are often resolved through arbitration, especially when international business relationships are involved. Arbitration may be required under employment or business contracts and may include a waiver of the ability to bring a class action in certain jurisdictions. Arbitration is also commonly used in consumer and employment matters. Consensual arbitration, especially commercial arbitration, must be distinguished from binding arbitration for consumer and employee disputes.
What is dispute?
An ongoing disagreement between two or more parties is called a dispute or disagreement. The parties can be individuals, groups or even nations. Conflicts can last a long time and have negative consequences. Conflicts can arise from differences of opinion. Conflicts can arise from disputes. Individual conflicts between people can become violent. Disagreements between organizations can result in legal action. Conflicts between nations are a possibility.
When we use arbitration
Arbitration may be used to resolve disputes relating to the following matters.
- Any questions
- differences
- Disputes
- Controversies or rights issues
- Violation of contract termination
- Task
- foreclosure
And many other points of dispute could be resolved through arbitration.
There are several steps to take before initiating arbitration. Mutual understanding, mediation, etc. are often used to resolve disputes. In addition, it is also common to proceed to the arbitrator to resolve the issue. Construction contracts Therefore, arbitration is not the only solution to resolve disputes.
Arbitration is often civil engineers' preferred choice for resolving disputes because it offers many benefits.
Firstly, this is a confidential procedure, which means that details of the dispute will not be made public. This is important when working on sensitive projects.
Secondly, arbitration is a quick and efficient procedure so that the dispute can be resolved quickly.
Third, arbitration is a flexible procedure, which means that the parties can agree on the rules of arbitration. This is important because parties often have to work within tight deadlines.
Finally, arbitration is a binding process, meaning the arbitrator's decisions are legally binding. This is important because it means that arbitrators can have confidence in the outcome of the arbitration.
Composition and appointment of arbitrators
- In general, the panel consists of three members or arbitrators.
- Most of the time, one party appoints an arbitrator and appoints a third person who, in most cases, takes the chair.
- If there are more than two parties, an arbitration tribunal will be appointed. This appointment is made in accordance with the Arbitration Law.
Benefits of Arbitration
- Contrary to the law, the parties themselves can choose the arbitration court.
- This is very useful in highly technical matters as the judiciary may not be well equipped to deal with these issues due to lack of awareness in this area.
- Compared to the court process, it is relatively quick.
- The confidentiality of the parties can be maintained.
- Language can be chosen, similar to the justice system
Disadvantages of Arbitration
- The appeals process is more difficult and there are fewer opportunities to overturn bad panel decisions.
- Arbitration is mandatory and binding
- There may be issues related to confidentiality
- If an arbitral tribunal is appointed to represent more than two parties, there may be delays in announcing the result due to the time allocated for the meeting.
- Please note that arbitration awards, like court awards, are not directly enforceable.
