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(CDR-1240) Trends in International Construction Arbitration

Primary Author: Mr Peter V. Badala
Co-author(s): James G Zack Jr CFCC

Audience Focus: Advanced
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: International arbitration is a transnational dispute typically involving disputes between parties from different nations often performing work in yet another nation. A UK contractor constructing a ore processing facility in a sub-Saharan African nation on behalf of a Canadian minerals company, files a claim for UK£1.45 million and seeks arbitration when the project owner refuses to settle is a an example of an international arbitration. As the world’s economy has become more globalized, more corporations are working internationally. Over the past two to three decades disputes on construction projects have become larger, more complicated and more common. A literature survey indicates that arbitration is the preferred dispute resolution mechanism for international corporations rather than transnational litigation. As the number of arbitration case filings has increased so has the number of arbitral institutions (which now number at least 28) and the seats of arbitration. Perhaps in reaction to growing criticism of the process, there has been and continues to be other changes concerning international arbitration.