doi:10.3850/978-981-08-7920-4_S1-L01-cd

ABSTRACT

This Paper describes the reasons for disputes in Engineering Contracts. They include the many participants and contracts, the difficulty of expressing what is required under the contract, the uncertainty of weather and of subsurface conditions, the crucial role played by the State and the need for a continuous money flow. Parties must consider and plan for disputes. Generally construction contracts provide for nonjudicial resolution of disputes. Judicial resolution is costly, time consuming and can result in an unfair outcome. Alternative Dispute Resolution (ADR) has been thought to mean avoiding litigation. Increasingly it means techniques to avoid disputes or at least resolve them before formal arbitration. International arbitration differs in many ways and raises issues not found in domestic arbitration, such as parties from different countries or legal systems, different languages, often inconvenient location, delays and complex administrative rules. Dispute avoidance techniques include mediation, dispute review boards, interim resolution by the design professional or adjudicator, guided negotiation, multi-tiered systems or nonbinding arbitration. Those who plan engineering contracts must be aware of the variety of techniques available to avoid and resolve disputes and decide which is best for their transaction.

Keywords: Disputes, Arbitration, International arbitration, Mediation, Dispute review boards, Interim resolution, Design professional, Adjudicator.

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