The obligation placed on parties to consider alternative dispute resolution (ADR) mechanisms is well documented. It’s one of the subjects of our ever-evolving laws. Parties to a dispute (and their lawyers) must actively consider ADR.
ADR ranges from non-binding processes, such as without prejudice roundtable meetings to mediation, to binding processes, such as expert determinations and arbitration. Resorting to the courts is often called “the last tool in the toolbox”.
It is normally prudent for the parties to explore non-binding forms of ADR first as often this is the most cost-effective way to resolve a dispute. Where that is not appropriate, or it has failed, parties should go on to consider binding ADR processes ranging from expert determinations to arbitration.
The Royal Institution of Chartered Surveyors (RICS) has launched a new arbitration service specifically for construction and engineering disputes.
The RICS arbitration service offers:
- Fast track arbitration services for disputes under £100,000. The fast track caps a party’s recoverable costs, limits the amount arbitrators can charge and requires the publication of arbitration awards every six months.
- A select arbitration service intended to provide a “viable alternative” to the Technology and Construction Court for high-value complex disputes publishing awards within 12 months.
The advantage of the RICS arbitration service is that it can achieve a more comprehensive deliberation of the issues rather than the current adjudication process (which can often be cursory in approach). Currently, only the fast track arbitration service rules are available on the website; RICS plan further development in time.
This RICS arbitration service illustrates the ever-evolving methods of ADR promoted by various professions.
Practitioners who do not advise their clients of all of the alternatives available to them could find themselves facing questions, complaints and possible claims from their clients if they have not advised them of cheaper and quicker alternatives to the Court process.
Contact property litigator Laura St-Gallay for more information about the RICS arbitration service.
Note: This article is not legal advice; it provides information of general interest about current legal issues.