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CHAPTER 25 ARBITRATION

Construction Law

CHAPTER 25 ARBITRATION Page 1940 Introduction 25.01 There is no neat or concise definition of “arbitration”. 1 When used in this book, “arbitration” refers to the resolution of a dispute, on a final basis, pursuant to a consensual mechanism under which the dispute is adjudicated upon by a private tribunal in a similar manner to how a court adjudicates on matters before it. An arbitration, in contrast to forms of alternative dispute resolution (eg, expert determination), 2 is in the nature of a judicial adjudication. 3 Commercial arbitration is the principal alternative, in resolving construction and engineering disputes on a final basis, to resolving them by way of litigation. 4 Arbitration is a consensual process that takes place as a result of the parties agreeing that their disputes are to be resolved by way of arbitration. It may be distinguished from other forms of arbitration that take place pursuant to statute. 5

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