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International Construction Law Review

IS CONSTRUCTION ARBITRATION READY FOR ONLINE DISPUTE RESOLUTION?

DR PATRICIA D GALLOWAY

PhD, PE * CEO, Pegasus Global Holdings, Inc, Cle Elum, Washington, USA

1. Introduction

Arbitration is a form of alternative dispute resolution (“ADR”). The word alternative is important as parties have a choice as to how they wish to resolve matters of dispute when they arise. Arbitration, by the very concept, is intended to be an efficient and economical means of resolving disputes. Traditionally construction has been an industry that favoured ADR over formal litigation due to the complexity of technical issues not easily conveyed to or understood by a judge or jury. However, over the past decade construction arbitration has come under increasing attack for its rising costs and growing delays, and expansion of arbitration processes to the point that those processes are approaching the more complex and formal processes followed to resolve disputes through litigation. As a result, parties are looking for new methods of resolving their disputes in a more efficient and economical manner, such as originally promulgated by the arbitration process, including the use of internet information and communication (“ICT”). However, a question arises as to whether construction disputes or certain types of construction disputes can be resolved through the means of using the ICT arbitration platform.
The benefits to ICT arbitration include reductions of the total cost, shorter total time to resolution, improved neutrality and more efficient document exchange. In spite of those expected improvements there are a number of issues that must be considered in the use of ICT and ADR for resolving construction disputes over the Internet including: confidentiality and security; authenticity; miscommunication; user-sophistication; and enforceability of the award. This paper explores the pros and cons of using ICT for binding arbitration in construction disputes; examines how the process might work; whether it may be appropriate for only some types of construction arbitration disputes, and how binding arbitration over the Internet might be administered.


The International Construction Law Review [2013

216

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