Expert Opinion
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What documents are typically required during construction sector arbitration?
- The construction contract and any amendments or addendums.
- Correspondence and communications between the parties related to the dispute.
- Project plans, specifications, and drawings.
- Invoices, payment records, and financial documents.
- Site reports, inspection records, and project documentation.
- Expert reports or witness statements.
What are the common issues that lead to construction sector arbitration?
- Contractual disputes: Breach of contract, interpretation of contract terms, payment disputes, change orders, etc.
- Delays and scheduling conflicts: Claims related to project delays, disruptions, and extensions of time.
- Defective workmanship or design: Disputes over the quality of work or design issues.
- Payment and pricing issues: Disagreements over progress payments, variations, and final account settlements.
- Termination of contracts: Issues arising from the termination of construction agreements.
How is an arbitrator selected for construction sector arbitration?
- Agreement: The parties can mutually agree on a single arbitrator or a panel of arbitrators from a list of qualified candidates.
- Appointing Authority: Some arbitration institutions have a designated appointing authority that selects arbitrators based on the parties’ preferences or qualifications.
- Court Appointment: In some cases, local laws may allow courts to appoint an arbitrator if the parties fail to agree.
How are costs managed in construction sector arbitration?
The management of costs in construction sector arbitration depends on the agreement between the parties and the arbitration rules chosen.
Generally, parties share the costs of the arbitration, including the arbitrator’s fees, administrative fees of the arbitral institution (if any), and other expenses related to the proceedings.
The allocation of costs can be addressed in the arbitration clause of the contract or decided by the arbitrator as part of the final award.
Can experts be involved in construction sector arbitration?
Yes, experts often play a crucial role in construction sector arbitration.
Both parties may appoint their own experts to provide technical assessments, reports, and opinions related to the construction dispute.
These experts may be architects, engineers, quantity surveyors, or other industry specialists with relevant knowledge and experience.
The arbitrator may consider the expert reports when making their decision, especially when dealing with complex technical matters.
How long do construction arbitration typically last for in India?
In India, the Arbitration and Conciliation Act, 1996 governs arbitration proceedings, and it provides a general framework for the conduct of arbitrations, including construction arbitrations.
According to this Act, arbitrators are required to make their award within a period of twelve months from the date they received written notice to act as arbitrators.
However, parties can agree to extend this time limit by mutual consent.
Can an arbitration award in Indian construction sector arbitration be challenged in court?
Yes, an arbitration award can be challenged in court under certain limited grounds specified in the Arbitration and Conciliation Act, such as invalidity of the arbitration agreement, lack of proper notice, or a violation of public policy.
Can construction disputes in India be resolved through arbitration?
Yes, construction disputes in India can be resolved through arbitration. It is a widely used method of alternative dispute resolution in the construction sector.