Construction projects are almost always time-sensitive. Questions of cashflow are critical to both parties and disputes often arise under intense commercial pressures and variously involve issues of delay; prolongation and extensions of time; variations and defects; termination rights; back-to-back payment clauses and performance guarantees. Construction disputes are usually complex and often require technical evidence given by expert quantum or delay witnesses and evidence is frequently document-heavy. Online dispute resolution (ODR) preserves the core strengths of arbitration which include neutral decision-making, procedural flexibility and enforceable outcomes whilst relying on technology to reduce costs, increase procedural efficiency and to improve the management of complex evidence.
Properly managed online construction arbitration proceedings can, when properly managed, deliver the same legal robustness as in-person proceedings which parties are finding well-suited to modern, cross-border projects.
Construction Arbitration and ODR
Online dispute resolution in construction arbitration means arbitral proceedings that are conducted mainly through digital means. Procedural hearings; document submissions; interim applications and evidentiary hearings take place remotely supported by secure digital case management platforms.
The Tribunal will still comprise either a sole arbitrator or a three-member Tribunal who will determine the dispute on the evidence and submissions and who will issue a final award. The key difference lies in the method of engagement with the use of technology aimed at reducing costs and delays.
Online dispute resolution is particularly useful in resolving cross border international disputes – particularly if witnesses and experts are in different jurisdictions.
Cost Benefits
Traditional construction arbitration is often document heavy and costly. The use of online dispute resolution reduces the costs not only of document management but also controls expenses related to travel, accommodation, physical hearing venues and the logistics of cross-border proceedings over multiple jurisdictions. Online dispute resolution offers the decision makers, witnesses, and experts remote access to key materials during an arbitration. ODR is a flexible and cost-effective way of dispute resolution, which reduces the physical and financial burden on all the parties involved in the arbitration process.
Speed and Efficiency
A key advantage is the ability to hold procedural meetings and merits hearings virtually thereby permitting parties, arbitrators, and experts to participate from remote locations. This saves both time and resources and is particularly suited to complex multi-jurisdictional construction disputes.
Flexibility
One of the noteworthy features of Online Dispute Resolution is that it can be adapted to fit the complexity level of a particular case. Experienced Tribunals manage disputes efficiently through digital case management systems and will issue procedural directions as well as manage document submissions and interim applications wholly online. ODR offers procedural flexibility allowing arbitrators to manage proceedings to meet the specific requirements of complex construction cases.
Procedural Efficiency
Construction arbitration usually involves expert evidence which will cover engineering analyses as well as delay assessments and quantum reports. Online dispute resolution facilitates the storage and management of large volumes of technical documents. Virtual hearings also support concurrent expert testimony helping Tribunals to determine complex technical matters. Digital technologies can provide greater clarity, accessibility and organisation of complex construction evidence.
Transparency
Secure online dispute resolution platforms offer a centralised portal that allows Tribunals to manage pleadings, evidence, procedural orders, and correspondence virtually. This improves the overall transparency and efficiency of the arbitral process. All parties benefit from online access to case materials, whilst Tribunals can monitor and adapt procedural timelines efficiently and effectively.
Sustainability
The use of ODR reduces both paper use and international travel thereby reducing overall carbon footprint.
Confidentiality
Many aspects of construction projects involve commercially sensitive information including contract pricing, design details, and proprietary methodologies. The best ODR platforms, when properly used, offer a secure digital infrastructure including encryption and controlled access that help protect the confidential information of both parties. When used correctly, online arbitration has the potential to provide confidentiality or data protection that is comparable to traditional in-person arbitrations.
Bolz Arbitration and ODR
Founded in Dubai in 2009 by Anja Bolz, Bolz Arbitration offers accredited and experienced independent arbitration services to individuals and companies internationally and in the MENA region. Bolz Arbitration offers expertise in UAE arbitration law as well as internationally and combines cutting-edge legal technology with procedural expertise inter alia in ICC arbitration. Our experience in a range of ODR processes delivers faster, cost-effective, and enforceable outcomes tailored to complex construction disputes. Contact Bolz Arbitration for a free initial discussion.