What is Arbitration in Dispute Resolution

by ·

Share

Arbitration is a process that can be beneficial to engineering projects, allowing for addressing disputes constructively and efficiently. This article explores what is arbitration, how it works, and how it can be used to resolve common disputes in the engineering sector. It outlines the benefits of using arbitration as a dispute resolution mechanism and why it is often the preferred choice for civil engineers.

What does Arbitration Mean

It is a process of dispute resolution that is used to resolve disputes between two or more parties. It is often used in civil engineering disputes, as it is a constructive and efficient way to resolve these disputes.

Commercial disputes are frequently settled by arbitration, especially when there are international business dealings involved. The arbitration may be required under the terms of employment or commercial contracts and may include a waiver of the ability to file a class action lawsuit in certain countries. Arbitration is also often used in consumer and employment concerns. Consensual arbitration, especially commercial arbitration, should be distinguished from mandatory arbitration for consumer and employee disputes.

What is Dispute

An ongoing disagreement between two or more parties is referred to as a dispute or disagreement. The parties could be individuals, groups, or even nations. Conflicts can go on for a very long period and result in negative outcomes. Conflicts can result from disagreement. Conflicts can develop from disputes. Individual conflicts between people can turn violent. Legal action may result from disagreements between organizations. Conflict between nations is a possibility.

When we Use Arbitration

Arbitration can be used to settle issues arising from the following issues.

  • Any doubt
  • Differences
  • Disputes
  • Controversy or claim issues
  • Breach termination
  • Abandonment
  • Foreclosure

And many more issues could be settled with arbitration.

Professional indemnity insurance

There are different steps before going for arbitration. Mutual understanding, mediation, etc. are commonly used for dispute resolution. In addition, proceeding with the adjudicator to resolve the issue is also common in construction contracts. Therefore, arbitration is not only the solution to resolving disputes.

Arbitration is often the preferred choice for civil engineers when it comes to dispute resolution, as it offers many benefits.

Firstly, it is a confidential process, meaning that the details of the dispute will not be made public. This is important for work on sensitive projects.

Secondly, arbitration is a fast and efficient process, meaning that the dispute can be resolved quickly.

Thirdly, arbitration is a flexible process, meaning that the parties can agree on the rules of the arbitration. This is important as they often have to work within strict timeframes.

Finally, arbitration is a binding process, meaning that the decisions of the arbitrator are legally binding. This is important as it means that they can have confidence in the outcome of the arbitration.

Composition and Appointment of Arbitrators

  • Generally, there will be three members or arbitrators in the panel.
  • Mostly either party will nominate an arbitrator, and they will appoint a third person who becomes the chairman in most cases.
  • When there are more parties than the two, an arbitration tribunal would be appointed. This kind of appointment will be done as per the act of arbitration.

Advantages of the Arbitration Process

  • Not like the legislation, parties can select the arbitration tribunal.
  • This is very useful in the highly technical matter as the judiciary segment may not the that good to handle those issues do the lack of awareness in the field.
  • It is relatively quick when compared to handling in the court.
  • Confidentiality of the parties can be maintained in the process.
  • Language can be selected not unlike the judiciary system

Disadvantages of Arbitration 

  • There are difficulties for appeal and fewer possibilities in overturning the erroneous decisions given by the panel.
  • Arbitration is mandatory and binding
  • There may be issues connected with confidentiality
  • When there is an arbitration tribunal appointed to represent more than two parties, getting the result could be delayed due to the time allocation for sitting.
  • Note like the court judgments, arbitration judgments are not directly enforceable.

You may also like...