Arbitration

Question 1

What is the arbitration process

Answer 1

It will be set out in the Contract as the ‘arbitration agreement’. JCT produces model arbitration rules

Question 2

How many people must be on an arbitration tribunal

Answer 2

Unless specifically agreed, it must be an odd number

Question 3

How are arbitrators appointed?

Answer 3

If 1, then the parties must agree within 28 days of notice of arbitration

If 2, within 14 days of the notice of arbitration, each party must select an arbitrator.

If 3, within 14 days of the notice of arbitration, each party must select an arbitrator. These will then select a third

Question 4

What happens if one party fails to appoint their arbitrator?

Answer 4

After 7 days, the only selected arbitrator becomes sole arbitrator

Question 5

What are the powers of an arbitrator?

Answer 5

Binding on both parties

Question 6

In what circumstances can an arbitrator’s award be corrected?

Answer 6

• Clerical errors
• To award on an item that was put to them but not included in the award

Question 7

Can arbitration decision be appealed?

Answer 7

Yes under certain circumstances listed under the arbitration act section 67, 68, 69 (e.g. ambiguity)

Question 8

Whats the difference between arbitration and litigation

Answer 8

• Arbitration is private
• Arbitration has a more limited appeal process
• Arbitration is typically faster