ABSTRACT
Given the nature of the construction industry, disputes are an inherent threat that invariably have a negative impact on a project’s cost and time. One of the essential constituents of a construction contract is the mechanism to settle any claims or disputes between parties. Arbitration is a mechanism for settling disputes. It is a domestic forum for dispute resolution through a person who is chosen by the parties or by a third party authorised by both the parties to the dispute and his/her verdict is legally enforceable where the arbitration law has been enacted. This chapter deals with arbitration; conciliation and dispute resolution; the Arbitration and Conciliation Act, 1996; domestic arbitration; international commercial arbitration; principal causes of disputes and claims and their effects on the project; dispute settlement methods in the construction industry; arbitration as a dispute settlement mechanism; types of arbitration proceedings; the advantages of arbitration; and the process of arbitration and settlement.
