Dispute resolution clause
The Institute recommends the following standard wording as
an arbitration clause:
"Any dispute or difference arising out of or in connection
with this contract shall be determined by the appointment of a
single arbitrator to be agreed between the parties, or failing
agreement within fourteen days, after either party has given to the
other a written request to concur in the appointment of an
arbitrator, by an arbitrator to be appointed by the President or a
Vice President of the Chartered Institute of
Arbitrators."
Mediation & Arbitration
"Any dispute arising out of or in connection with this
contract shall, at first instance, be referred to a mediator for
resolution. The parties shall attempt to agree upon the appointment
of a mediator, upon receipt, by either of them, of a written notice
to concur in such appointment. Should the parties fail to agree
within fourteen days, either party, upon giving written notice, may
apply to the President or the Vice President, for the time being,
of the Chartered Institute of Arbitrators, for the appointment of a
mediator.
Should the mediation fail, in whole or in part, either
party may, upon giving written notice, and within twenty eight days
thereof, apply to the President or the Vice President, for the time
being, of the Chartered Institute of Arbitrators, for the
appointment of a single arbitrator, for final resolution. The
arbitrator shall have no connection with the mediator or the
mediation proceedings, unless both parties have consented in
writing. The arbitration shall be governed by both the Arbitration
Act 1996 and the Controlled Cost Rules of the Chartered Institute
of Arbitrators (2000 Edition), or any amendments thereof, which
Rules are deemed to be incorporated by reference into this clause.
The seat of the arbitration shall
beEnglandandWales
."
ADR
"The parties shall attempt to resolve any dispute arising
out of or relating to this contract through negotiations between
senior executives of the parties, who have authority to settle the
same. If the matter is not resolved through negotiation, the
parties will attempt to resolve the dispute through an Alternative
Dispute Resolution (ADR) procedure as recommended to the parties by
the Chartered Institute of Arbitrators. If the matter has not been
resolved by an ADR procedure within 30 days of the initiation of
that procedure, or if either party will not participate in an ADR
procedure, the dispute shall be referred to a single arbitrator, to
be appointed by the President or the Vice President, for the time
being, of the Chartered Institute of Arbitrators. The arbitration
shall be governed by both the Arbitration Act 1996 and the
Controlled Cost Rules of the Chartered Institute of Arbitrators
(2000 Edition), or any amendments thereof. The seat of the
arbitration shall
beEnglandandWales
.
Adjudication
"A party to this contract ("the Referring Party") may at
any time give notice ("the Notice") in writing to the other party
of its intention to refer a dispute arising under the contract to
adjudication.
The parties may agree the identity of the
adjudicator.
Where an adjudicator is not agreed within 2 days of the
Notice being given the Referring Party shall immediately apply to
the Chartered Institute of Arbitrators for the nomination of an
adjudicator, which nomination shall be communicated to the parties
within 5 days of receipt of the application.
Within 7 days of the Notice the Referring Party shall
refer the dispute to the adjudicator.
The adjudicator shall reach a decision within 28 days of
referral or such longer period as is agreed by the parties after
the dispute has been referred.
The adjudicator may extend the period of 28 days by up to
14 days, with the consent of the party by whom the dispute was
referred.
The adjudicator shall act impartially.
The adjudicator may take the initiative in ascertaining
the facts and the law.
The decision of the adjudicator is binding until the
dispute is finally determined by legal proceedings, by arbitration
(if the contract provides for arbitration or the parties otherwise
agree to arbitration) or by agreement.
The adjudicator is not liable for anything done or omitted in the
discharge or purported discharge of his functions as adjudicator
unless the act or omission is in bad faith and any employee or
agent of the adjudicator is similarly protected from
liability."