Originally from Arbitration Law of Brazil: Practice and Procedure - Second Edition

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THE AWARD

8.1 TIME LIMIT TO ISSUE THE AWARD

The arbitration agreement should set forth the time limit for the
issuance of the award. If it fails to do so, either directly or through
reference to an arbitration rule,1 the Arbitration Law of 1996 prescribes a
time limit of six months, counted from the institution of the arbitral
tribunal,2 that is to say, from the date when the sole arbitrator or the last
member of the tribunal accepts appointment.3 If an arbitrator is replaced
during the case, the term will be counted from the acceptance of the
substitute arbitrator.4

The time limit for the issuance of the award is a critical issue, since
an award rendered after the deadline agreed upon by the parties or
prescribed by applicable law may be set aside.5 However, the mere
passage of such time limit does not automatically render the arbitral
award null: the party wishing to enforce the time limit shall notify the
sole arbitrator or the president of the arbitral tribunal, which will then
have 10 days to issue the award.6 7

It is usual, during the drafting of the arbitration agreement, for the
parties to choose a very short period for the issuance of the arbitral
award, aiming at the quick resolution of future conflicts. Practice shows,
however, that having too short a deadline might cause problems, since
the parties will probably need reasonable time to prepare their statements
and to submit evidence in the course of the arbitration, and the arbitrators
will need a certain amount of time to draft their decision. If the parties
really wish to have a fast arbitration, they should carefully draft the
arbitration agreement so as to leave room for further extensions of the
deadline for the arbitral award, especially if a complex dispute arises.
This issue has become increasingly important in international
arbitrations, and arbitration institutions have been trying to improve their
rules to allow for faster processes.8

Another practical concern is carefully setting forth the starting date
of the term for issuance of the award, to avoid the risk of overly
truncating the arbitration period. It is not uncommon, for example, to see
clauses providing that the arbitration time limit will run from the request
for arbitration. This might not be the most appropriate wording, because
the parties may lose significant time in the appointment of arbitrators and
the drafting of the terms of reference, and be left with inadequate time
for the evidentiary phase and the hearing. In this sense, both the
Arbitration Law of 1996 and certain arbitration rules, such as the ICC’s,
count the time limit for the award from an event after the formation of
the tribunal

The arbitral award must be “issued” within the applicable time limit,
which means that it shall be written and signed by this deadline.10 It is
not necessary, though, to notify the parties of the award within that time
limit, and the notification may be made afterward.