The construction business is viewed as one of the most disputed and debated ridden sector, which has brought about it being one of the most claim orientated segments. Earlier, parties used to register civil claim before relevant court authorities, often considered as costly and time-consuming method to resolve construction disputes. However, with time Real Estate Lawyer of Dubai has witnessed numerous other alternatives as dispute resolution mechanisms for construction industry commonly known as Alternative Dispute Resolution (ADR).
The conceivable ADR measures accessible to construction disputes are: mediation, conciliation, arbitration and litigation. As opposing the traditional way of resolving disputes, the parties now generally reflect the procedure for dispute resolution in the construction contract to avoid future issues. The Civil Lawyers of Dubai experienced in multiple construction cases will highlight some of the alternatives available for construction contractors to seek their claim in UAE.
The Chosen Alternatives
Generally, parties to a construction contract acted in the UAE can consent to allude their disputes to the UAE courts, to a foreign court or to arbitration either n the country or outside as they may deem fit.
Where the gatherings have consented to allude a dispute to discretion in the UAE, a UAE court will similarly supersede the parties’ understanding and acknowledge jurisdiction over the issue in the event the defendant is unable to challenge the jurisdiction of UAE courts by presenting a consented arbitration agreement before the parties, the court will consider its jurisdiction and will issue the judgment accordingly as when the time comes.
Apart from submitting the civil claim before the courts of UAE, the parties have the right to present the dispute before arbitration institutes as registered within the country, subjected that they have a special arbitration agreement signed between the parties as per the provision of new Arbitration Law issued in UAE.
Additionally, the following are the alternatives for dispute resolution mechanisms available for the parties in a construction contract in the country:
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Negotiation:
It is one of the most considerable method of resolving construction disputes, wherein parties agree to negotiate their dispute without approach =ing the relevant authorities for an award or judgment.
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Expert opinion:
This option is available to both the parties to seek an expert advice from a third independent party. In the event the parties fail to appoint an expert to determine the veracity of the dispute, the International Chamber of Commerce can assist the parties and appoint an expert. This option is often used in situations where the parties tend to seek an opinion on a technical matter prior to approaching the court authorities or arbitration.
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Arbitration:
On the off chance that expert determination isn’t viewed as adequate for a final dispute resolution mechanism, arbitration can be. In UAE, most construction contracts define the procedure for dispute resolution wherein most of them chose for arbitration in the country for resolving their dispute, considering the obvious difference between arbitration and litigation. The country provides several dispute resolution centres for arbitration such as the Dubai International Financial Center-London Court of International Arbitration (DIFC-LCIA) or the Dubai International Arbitration Center (DIAC). In June 2018, the UAE sanctioned another government arbitration law, making it additionally engaging for contractual workers and proprietors to settle on the UAE as a “seat” of arbitration.
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