Advantages And Disadvantages Of Problems In Construction Arbitration

Arbitration is the submission of a disputed matter to an impartial person (the arbitrator) for decision. Arbitration is typically an out-of-court method for resolving a dispute. The arbitrator controls the process, will listen to both sides and make a decision. Like a trial, only one side will prevail. Unlike a trial, appeal rights are limited.

Although the arbitrator’s final awards are legally binding, an unhappy party of arbitration may still go to court under certain circumstances.  As mentioned by Fallon & McConnell, “unless one party protests that there was a gross injustice, collusion, or fraud, arbitration that is specified by a contract can be converted into a legal judgment.  This requires a petition to the appropriate court” (n.d., p. 388).  As expected, this can become costly for the person who is seeking to appeal.

Arbitration is a method to submit a resolution in an arbitral, rather than a judicial forum. For non-labor issues, arbitration can be a less expensive solution. One example is The Home Owners ' Warranty program. A program which aimed to resolve disputes between homeowners and builders. The program was designed between the Home Owners ' Warranty programs of the National Association of Home Builders. This program started in 1973 as a method of formally resolving disputes through arbitration. The program provided a warranty program, using mediation, and arbitration to resolve differences. Before the warranty program was created, the National Association of Home Builders came to the Federal Mediation and Conciliation Service for advice and assistance on dealing with homeowner disputes. Over the years, the program has expanded across the country through the Magnuson-Moss Bill, assisting the Federal Trade Commission on issuing rules on warranty’s and guaranties. The arbitration occurs while looking at the evidence of a dispute objectively for the best solutions (Barrett, 1985, p. 32).

On June 23, 2008, Formula One Racing Group (referred to herein as “FORG”) solicited bids for the building of a parts warehouse at its facility located at 1265 E. 20th Street in Chico, California. General Contracting Associates (referred to herein as “GCA”) entered into a contract with FORG to build the aforementioned warehouse. At the time of the signing of the contract, FORG and GCA were bound in privity. In this case GCA had asserted five claims for breaches of contract by the defendant FORG.

In the construction business, where it is all about metal, concrete, heavy duty machines and equipment, words may find themselves a lot out of place. But over the years, they have proved their lethal might in the construction business where legal outings have become common. Shaped in the form of a contract, these words have found its rightful place of respect in the form of The International Federation of Consulting Engineers (commonly known as FIDIC), New Engineering Contract (NEC3), Royal Institute of British Architects (RIBA), Joint Contracts Tribunal (JCT), Infrastructure Conditions of Contract (ICC), etc. These are standard contract suites applied world over and each come with its own advantages and disadvantages. In this

After carefully considering the situation in both plaintiff (Eunice) and defendant (RFYL), arbitration should be an effective Alternative Dispute Resolution in

Mediation involves a third party mediator to resolve the dispute. The third party mediator is unbiased and uninterested. This individual usually is a trained professional in mediation and is aware of legal principles that may affect the case. Arbitration is a form of ADR that utilizes a third party decision maker to resolve a dispute; this individual is considered an arbitrator. Advantages of arbitration are the use of decision makers that have expertise in the subject matter. This can help prevent ill decisions by the use of a jury and ensure that the case is being reviewed by a knowledgeable professional. Another advantage of using arbitration is that the resolution both parties lose control of the resolution process. This portrays an act of fairness that can be lost in litigation. In addition, the low costs and privacy involved with using an arbitrator to settle a dispute will save both parties money and prevent the public from seeking information on the topic; thus potentially avoiding negative reception from the public once the settle is complete. The end goal of the parties involved in an alternative dispute resolution is that a settlement is agreed upon. A Settlement involves two parties in a legal dispute that work out their differences and enter into an agreement to resolve the situation. Depending on the circumstances, an agreement could involve monetary reward or simply an

In evaluating the legality of an arbitration clause, the court examines the nature of the provision as it relates to both irrevocable statutory rights and private agreements between the employer and employee. To invalidate an arbitration provision on the basis of

The primary proposition in this regard is that the Arbitrator’s award is final in fact and law . Court’s interference is only in exceptional cases . The Courts have always been careful in

Under certain circumstance, the arbitration process is more sophisticated and knowledgeable than those in the judicial proceedings. I was intrigued to find out that the arbitrator was more knowledgeable than the judge. In my opinion, it should be the other way around whereas the judge should be more understanding and practical on the subject in question rather than the arbitrator. Moreover, the purpose of the arbitration is to have a quick, simple, and efficient method to solve disputes.

First off, I don't assume that binding arbitration clauses ought to ever prohibit the arbitration to only 1 cluster of individuals (ex. Home builders association). If there ever may be a state of affairs within which a binding clause is appropriate, there ought to a minimum of be a alternative of WHO the arbitration is and also the decisions ought to be neutral parties (ex. within the BP mastercard bill stuffer, it gave the choice of the yankee Arbitration Association, JAMS, and also the National Arbitration Forum). I don't assume that binding arbitration clauses ought to be includable working contracts. There square measure too several laws associate degreed laws relating to employers and also the approach businesses operate the I don't assume an intermediator would be anyplace close to as knowledgeable in these matters as a court would be, notwithstanding it absolutely was their space of experience.

Construction projects can be extremely complex and fraught with uncertainty. Risk and uncertainty can potentially have damaging consequences for the construction projects. Therefore nowadays, the risk analysis and management continue to be a major feature of the project management of construction projects in an attempt to deal effectively with uncertainty and unexpected events and to achieve project success. Risk is inherent on construction projects and disputes frequently arise. One in four construction projects results in a dispute that leads to arbitration or litigation. With large scale, complex projects the likelihood of serious, time-consuming and expensive claims increases.

Arbitration is legal technique used to resolve any disputes outside of the courts. Arbitration allows for speedy and cheap resolution of any disputes, the parties involved in a dispute agree to appoint a third person (arbitrator) who will hear their testimonies, and look into the evidence they provide. The arbitrator's decision cannot be challenged in a law court as it is considered final and the parties involved have to accept the decision (Brams & Merrill, 1986). There are only very limited circumstances where the decision of an arbitrator can be challenged, and this is mostly if there can be proof from one of the parties showing that the arbitrator was biased in their decision or ruling. The chosen arbitrator will be an experienced person in the area of the dispute.

Eggelston, B (1997). Publisher; Blackwell Publishing, Place of Publish; Oxford, Liquidated damages and extension of time in construction contracts, 2nd ed. p252.

Firstly, the choice of law applicable to the substance of the dispute which the parties have made can be either express or implied and if such choice took place the arbitrators have to apply it. Without any indications concerning choice of applicable law, an arbitral tribunal has to determine such law through the searching of proper