Suitability of Arbitration Rules for Construction Disputes -

Arbitration continues to be the preferred method of dispute resolution for construction disputes.

With many large infrastructure projects being financed, developed, supplied and constructed by companies from countries other than the one where the project sits, international arbitration is the most attractive option for resolving disputes among the interested parties. The driving reason behind this preference is that international companies involved in construction and engineering would rather look to arbitration to resolve their disputes, as opposed to subjecting themselves to the idiosyncrasies of local court systems and their inherent risks. As a result, construction and engineering projects consistently generate the largest percentage of commercial disputes before international arbitral bodies. For example, in 2015, they made up 25 per cent of all cases before the International Chamber of Commerce, which was the largest percentage of any subject matter by a significant margin.