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Arbitration is a process where, by agreement, the parties to a dispute have the
matter settled by the decision of one or more independent persons. This
agreement may be entered into after the dispute has arisen or it may be
expressly provided for within a contract. Arbitration is a private procedure
with only the parties to the arbitration agreement and their representatives
attending any arbitration meeting or hearing. Arbitration has the force of law
and generally the arbitrator's decision, called an Award, is final and binding
and can be enforced in court.
It is normal for an arbitrator to be appointed for his specialist technical
knowledge and experience of the matters in dispute e.g. a Lawyer, Engineer,
Architect or Quantity Surveyor.
On the 31 January 1997 Parliament enacted the Arbitration Act 1996. The
Arbitration Act is generally recognised as being a masterpiece of legislation
being founded on three principles, namely, (i) the fair resolution of disputes
by an impartial tribunal without unnecessary delay and expense (ii) the parties
are free to agree how there disputes are resolved, subject only to such
safeguards as are necessary in the public interest and (iii) the court should
not intervene unless provided by the Act. To facilitate this objective the Act
provides mandatory and non-mandatory provisions.
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The Act is also written in such a way to attract parties across the world to
bring their disputes for resolution by arbitration in England including
provisions for the recognition and enforcement of certain foreign awards
in court.
Since the advent of statutory adjudication, by way of Section 108 of Part II of
the Housing Grants, Construction and Regeneration Act 1996, and the imposing
timescale for the adjudicator to reach an interim and binding decision within
28 days of the referral, arbitrators are now striving to adopt some of those
techniques learnt in adjudication to reduce both time and cost in an
arbitration. Parties themselves have also realised, with the Arbitration Act
1996 providing party autonomy, that they also can influence the procedure to
reduce time and cost. The aim is to improve the effectiveness of arbitration
for commercial enterprises.
Nigel is a Chartered Arbitrator and is
available to receive appointments to act as arbitrator or provide advice to
parties contemplating or involved in the arbitration process.
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