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International Construction Law Review

DO RECENT OVERHAULS OF ARBITRATION RULES RESPOND TO THE NEED FOR MULTI-PARTY ARBITRATION IN THE CONSTRUCTION INDUSTRY?

DIMITAR HRISTOFOROV KONDEV1

ABSTRACT

International standard form construction agreements have still not provided for standardised solutions to face the increased demands for dispute settlement mechanisms capable of handling multi-party disputes in the construction sector and ad hoc clauses addressing these problems are rarely seen. National arbitration laws also seldom handle these matters. Therefore, the different stakeholders in the construction industry have to rely on the multi-party arbitration solutions contained in the arbitration rules applicable to their disputes. In recent years, we are witnessing overhauls of the major sets of arbitration rules with the purpose to introduce more efficient multi-party arbitration solutions. The present article analyses the extent to which these solutions respond to the need for multi-party arbitration in the construction industry.

1. INTRODUCTION

Arbitration is the preferred method for settlement of disputes in international commercial transactions, including in respect of international construction projects2. The perceived advantages of arbitration include the possibility of the parties to choose a neutral forum, to have a neutral tribunal with sufficient construction expertise in the constitution of which they may participate, the flexibility and fastness of the arbitration proceedings, as well as their confidential character. Furthermore, arbitration awards are

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