Construction Arbitration
Expert-defined terms from the Postgraduate Certificate in Construction Law and Arbitration course at LearnUNI. Free to read, free to share, paired with a globally recognised certification pathway.
Construction Arbitration #
Construction arbitration is a method of resolving disputes that arise in the con… #
It is a form of alternative dispute resolution (ADR) where parties agree to submit their disagreements to an independent third party for a binding decision. Construction arbitration is commonly used in construction contracts to avoid the delays and costs associated with traditional litigation in court.
Adjudication #
Adjudication is a process used to resolve disputes in the construction industry… #
It involves the appointment of an adjudicator who reviews the evidence presented by the parties and issues a decision that is legally binding on the parties. Adjudication is commonly used in construction contracts to resolve disputes in a timely manner and keep projects on track.
Alternative Dispute Resolution (ADR) #
Alternative dispute resolution (ADR) refers to methods of resolving disputes out… #
ADR methods include arbitration, mediation, adjudication, and negotiation. ADR is often used in the construction industry to resolve disputes quickly and cost-effectively.
Arbitrator #
An arbitrator is an independent third party appointed to hear and decide dispute… #
The arbitrator's decision, known as an award, is legally binding on the parties. In construction arbitration, arbitrators are often experts in construction law and industry practices.
Binding Decision #
A binding decision is a decision made by an arbitrator or adjudicator that is le… #
Parties are required to comply with the binding decision, which can be enforced through the courts if necessary.
Construction Contract #
A construction contract is a legally binding agreement between parties involved… #
The contract sets out the terms and conditions of the project, including scope of work, payment terms, and dispute resolution mechanisms. Construction contracts often include provisions for arbitration or other forms of ADR.
Dispute Resolution Clause #
A dispute resolution clause is a provision in a contract that outlines the proce… #
The clause typically specifies the method of dispute resolution, such as arbitration, mediation, or adjudication, and the procedures to be followed.
Expert Witness #
An expert witness is a person with specialized knowledge or expertise in a parti… #
In construction arbitration, expert witnesses may be used to provide evidence on technical or industry-specific issues.
Mediation #
Mediation is a form of alternative dispute resolution where parties work with a… #
The mediator facilitates communication between the parties and helps them explore options for settlement. Mediation is commonly used in construction disputes to preserve relationships and avoid costly litigation.
Neutral Third Party #
A neutral third party is an independent person or entity who is not affiliated w… #
Neutral third parties, such as arbitrators, mediators, or adjudicators, are appointed to help resolve disputes fairly and impartially.
Parties #
In the context of construction arbitration, parties refer to the individuals or… #
This may include contractors, subcontractors, owners, architects, engineers, or other stakeholders in a construction project.
Settlement Agreement #
A settlement agreement is a legally binding contract that outlines the terms of… #
The agreement typically includes provisions for resolving the dispute and may involve payment of damages, changes to the contract, or other remedies.
Stakeholders #
Stakeholders are individuals or entities who have an interest in the outcome of… #
This may include owners, contractors, subcontractors, suppliers, architects, engineers, regulators, and other parties involved in the project.
Subcontractor #
A subcontractor is a person or company hired by a general contractor to perform… #
Subcontractors are responsible for a portion of the project and are typically bound by the terms of the subcontract agreement.
Witness Statement #
A witness statement is a written document prepared by a witness in a legal proce… #
Witness statements are used as evidence in arbitration hearings to support the parties' positions on disputed issues.
Provisional Sum #
A provisional sum is an amount of money included in a construction contract to c… #
Provisional sums are used to allow for flexibility in the contract and may be adjusted based on the actual costs incurred during the project.
Delay Damages #
Delay damages, also known as liquidated damages, are amounts of money specified… #
Delay damages are intended to compensate the owner for losses incurred due to project delays.
Dispute Adjudication Board (DAB) #
A Dispute Adjudication Board (DAB) is a panel of independent experts appointed t… #
The DAB issues non-binding recommendations to the parties, which can be used as a basis for further negotiations or arbitration.
Expert Determination #
Expert determination is a process used to resolve disputes in which an independe… #
Expert determination is often used in construction disputes involving complex technical issues that require expert knowledge.
Interim Payment #
Interim payments are partial payments made by the owner to the contractor during… #
Interim payments are typically made based on the completion of specific milestones or stages of the project and are intended to help the contractor cover ongoing costs.
Retention #
Retention is a sum of money withheld by the owner from the contractor as securit… #
Retention is typically released to the contractor upon successful completion of the project.
Termination #
Termination is the act of ending a construction contract before the project is c… #
Termination may occur due to breach of contract, failure to perform, or other reasons specified in the contract. Termination of a contract may result in disputes over payment, damages, and other issues.
Time Bar #
A time bar is a provision in a contract that sets a deadline for parties to rais… #
Failure to comply with the time bar may result in the claim being barred or invalidated. Time bars are common in construction contracts to ensure timely resolution of disputes.
Variation #
A variation is a change or modification to the original scope of work in a const… #
Variations may be requested by the owner, contractor, or other parties involved in the project and typically require approval and adjustments to the contract terms.
Witness Evidence #
Witness evidence is testimony given by a witness in a legal proceeding to provid… #
Witness evidence may be presented orally in arbitration hearings or provided in written witness statements. Witnesses may be called to testify on disputed issues in construction arbitrations.