ABSTRACT
Standard Building Contract requires the parties to decide in advance whether arbitration or litigation will be used. Usually a mediator is appointed jointly by the parties and will meet with the parties together and separately in an attempt to resolve the differences. The outcome is often in the form of a recommendation which, if acceptable, can be signed as a legally binding agreement. Arbitration refers to proceedings in which the arbitrator has power derived from a written agreement between the parties to a contract, and which is subject to the provisions of the Arbitration Act 1996. The arbitrator has the right and the duty to decide all procedural matters, subject to the parties’ right to agree any matter. Arbitrators are usually senior and experienced members of one of the construction professions, and for many years it was felt that they had a greater understanding of construction projects and the disputes that arise than might be found in the courts.
