ABSTRACT
As in any large construction project, there is enormous potential for disputes to arise between the parties to a shipbuilding contract. These may be either technical or commercial in nature (or a combination of the two) but in every case the scope for disruption of the project as a whole may be substantial if a solution cannot quickly be found; furthermore, the financial consequences for the parties of either winning or losing the dispute may be very significant. It is accordingly vital that, in addition to choosing the law by which the contract is to be governed, the buyer and the builder should agree upon an effective and fair mechanism by which disputes arising between them are to be determined.
