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Multi-party disputes
Typical in construction are the multi-party disputes, making it difficult to resolve construction disputes through arbitration or other ADR.
C-build describes three possibilities to deal with multi-party arbitration proceedings:
n° 1: a draft clause that parties can insert in their (supply chain of) construction contracts,
n° 2: a multi-party arbitration agreement into which all parties of a construction project can enter,
n° 3: a standing arbitration tribunal, for which C-Build can provide the legal framework
Option n° 1 : insert a clause in the agreement
A first option is to insert the following clause in the contract starting at the one between the principal and the contractor or at the one between the contractor and the first level of subcontractors.
Download the model:
Option n° 2 : draft a separate arbitration agreement
Another option that has been implemented in complex contracts is having a separate arbitration agreement signed by all parties involved and to which reference is made in each contract and subcontract.
This Arbitration Agreement deals with joinder, intervention, consolidation, etc, in a similar manner as in the above clause. Having a separate arbitration agreement may facilitate the consolidated procedure as it exists separately from the various contracts which refer to it and does not entail the disclosure of some potentially confidential part of the initial agreement.