ABSTRACT
Arbitration is a consensual process that takes place as a result of the parties agreeing that their disputes are to be resolved by way of arbitration. It may be distinguished from other forms of arbitration which take place pursuant to statute. An agreement to refer a dispute to arbitration constitutes, by implication, an agreement that neither party is to commence proceedings in a court in respect of the same dispute. There are four principal sources of arbitration law relevant to construction and engineering disputes, being: the express agreement of the parties; statute law; the common law and in the context of international arbitrations, international arbitration treaties, and other relevant international and national laws. An agreement in such terms is acceptable at common law. It has been observed that commercial arbitration, the settling of private disputes without the assistance of the legal process, is a fact of life which the law has come to tolerate.
