Arbitration is a preferred method for resolving disputes arising from both domestic and international construction projects. International construction projects are complicated commercial and technical transactions. When disputes arise, the parties need efficient, effective, stable and enforceable means of resolution. If properly structured, international arbitration can provide the needed stability and enforceability. In designing an arbitration, careful consideration must be given to governing law, the location of the hearing, the composition of the tribunal, and the ethics of the arbitrators. Careful consideration must also be given to issues such as joinder and consolidation of related parties, interim relief, and emergency protocols. Parties should also provide for the use of emergency technology to aid in the efficient gathering and advocacy of evidence.
International construction projects are often complex, typically involving multiple parties from different countries and legal systems. Not surprisingly, disputes are quite common. Thus, at the contracting stage, the parties should decide whether to arbitrate disputes or to submit them to litigation. Many factors must be considered, as each method offers perceived and real advantages over the other. Considerations include the cost of the process, its duration, the amount of control afforded to each party in resolving the dispute, the finality of a decision, and enforceability of a judgment. If arbitration is selected for dispute resolution, the parties then must decide whether to use an institutional program, such as the American Arbitration Association, or to proceed with an ad hoc arbitration process.