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Arbitration

 A method to resolve differences and disputes

between two parties by a third party.

NEED:

Disputes between architect and client.

Quality of professional service

Lack of supervision

Payment of fees etc .

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Arbitration

 ADVANTAGES:

Resolving in courts is expensive, time consuming.

 Arbitration is quicker, less expensive with possibility

of an amicable solution.

CONCILIATION

 Alternative method to dispute redressal

Partly legal

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Arbitration

 All disputes or differences which may arise between theClient and the Architect under “Conditions of

Engagement and Scale of Charges” with regard to the

meaning or

interpretation or

matter or

 things done or to be done in pursuance hereof,….such disputes and differences shall be referred for

arbitration to the Council of Architecture.

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Arbitration

The arbitrator shall be appointed by the President,

Council of Architecture.

The arbitration shall be conducted as per the

provisions of the Arbitration and Conciliation Act,

1996.

The decision and award of the arbitrator shall befinal and binding on the Architect and the Client.

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Arbitration

CONDITIONS

 Agreement in Writing-clause In letter of appointment

Conditions of contract

 ARCHITECT AS ARBITRATOR

“Quasi arbitrator” ON “Expected matters” 

Provide relevant information to arbitrator.

 Appear before arbitrators, independent witness

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Arbitration

 ARCHITECT AS QUASI ARBITRATOR

1. Error or inconsistency in drawings furnished to

contractor.

2. Issue instructions to contractor from time to time.

3. Dispute about the manner of execution of works

or provision of equipment etc.

4. Sub letting of job by contractor.

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Arbitration

 ARCHITECT AS QUASI ARBITRATOR

5. Materials and workmanship

6. Extension of time- 10 points , in 5 architects

decision final.

Contractor can initiate arbitration if he is

aggrieved by the Project architects’ decision. 

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Arbitration

 APPOINTMENT OF ARBITRATORS

1. Named in contract itself

2. Each party nominates its own arbitrator. These

 joint arbitrators will then appoint an umpire.

3.  A person authorized to appoint an arbitrator.

4.  A sole arbitrator selected from a panel of names

mentioned in the arbitration clause.

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Arbitration

 APPOINTMENT OF ARBITRATORS

1. Name should be conveyed in written-can be changed.

2. If one party does not appoint arbitrator- the other can

nominate a sole arbitrator.

ESSENCE OF ARBITRATION IS THE CONFIDENCE

REPOSED BY THE PARTIES IN THE ARBITRATORS.

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Arbitration

REMOVAL OF ARBITRATORS

Can be removed only by a court of law.

1. Excess of jurisdiction

2. Misconduct- bribery, corruption, breach of duty/neglect.

3. Disqualification

4. Charges of fraud

5. Exceptional cases

Court intervenes in genuine cases only.

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Arbitration

SHORTCOMINGS

1. Never resolved on time.

2. Joint arbitrators-coordination and agreement.

3. Transparency of dealings

4. One party can take the matter to the court.

HENCE CONCILIATION AS AN ALTERNATIVE.

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Arbitration

CONCILIATIONS

1. Panchayat practice as role model.

2. Conciliator- person trusted by both parties.

3. No other power except persuasion.

4. Establish facts-finding common ground-conciliation.

5. No legal interventions.

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Arbitration

The arbitration and conciliation bill, 1996-domestic and

international

•  Any aspect of arbitral award may be challenged in

court within 3 months

•  After that legally binding.

• Appeal in court if not enforced.