Title
CIAC Rules Amendments on Construction Arbitration
Law
Ciac No. 1-98
Decision Date
Mar 31, 1998
CIAC Resolution No. 1-98 amends the rules governing construction arbitration, detailing the selection and appointment of arbitrators, their qualifications, and the procedures for challenging and replacing them to ensure fair and efficient dispute resolution in the construction industry.

Law Summary

Article V: Choice and Selection of Arbitrators

Section 1: Number of Arbitrators

  • Disputes may be resolved by either a Sole Arbitrator or a panel of three Arbitrators (Arbitral Tribunal)
  • Appointment based on agreement in arbitration clause or agreement to arbitrate
  • Absence of agreement allows CIAC discretion to select a Sole Arbitrator or an Arbitral Tribunal depending on dispute complexity or amount in controversy

Section 2: Sole Arbitrator

  • Parties each may nominate three arbitrators when Sole Arbitrator mode is agreed
  • Failure to nominate results in CIAC appointing the Sole Arbitrator
  • If a common nominee exists, CIAC appoints that nominee provided they are qualified and available
  • Without common nominee or if nominee disqualified or unavailable, CIAC may appoint a Sole Arbitrator or Arbitral Tribunal
  • Sole Arbitrator appointed must not be party-nominated and must be qualified and available

Section 3: Arbitral Tribunal

  • Parties each nominate six CIAC-accredited arbitrators when three-member tribunal agreed
  • In absence of a common nominee, CIAC appoints one arbitrator each from parties’ nominee lists
  • The two selected arbitrators choose the third member within 15 days; failing that, CIAC appoints the third member
  • If common nominees exist from parties’ lists, CIAC appoints them accordingly
  • The three arbitrators select their Chairman

Section 5: Challenge of Arbitrators

  • Arbitrators may be challenged anytime post-appointment but pre-award for grounds including partiality, bias, incompetence, or professional misconduct
  • Challenges must be sworn complaints detailing facts supported by affidavits and documentary evidence
  • CIAC ensures the arbitrator an opportunity to be heard
  • Arbitrator may inhibit himself, subject to CIAC approval
  • CIAC makes final decision on challenge; if arbitrator removed, promptly appoints replacement
  • Replacement of third member selected by initial two members if challenge involves the third arbitrator

Article VI: Qualifications and Status of Arbitrators

Section 1: General Qualifications

  • Arbitrators must be highly respected individuals instilling confidence in both business and government sectors
  • Must be technically qualified to resolve construction disputes fairly and expeditiously
  • Drawn from diverse professions: engineers, architects, construction managers, business experts, and experienced lawyers

Section 2: CIAC Accreditation

  • Arbitrators must be from the CIAC-accredited list
  • Applies to original appointees and replacements

Section 3: Employment Status

  • Arbitrators are not permanent employees of CIAC
  • Serve only when called upon to arbitrate specific disputes

Article VII: Appointment and Acceptance Procedures for Arbitrators

Section 3: Acceptance of Appointment

  • Arbitrators must communicate acceptance or refusal within 5 working days upon receipt of appointment
  • Failure to respond leads CIAC to appoint replacement from nominating party’s list or CIAC's accredited arbitrators if none available or qualified

Article XIII: Venue, General Matters, and Settlement Freedom

Section 12: Freedom to Settle

  • Parties may settle disputes anytime, even during active arbitration
  • Arbitration expenses incurred are charged against the deposit
  • If deposit is insufficient, parties share the remaining balance equally
  • Parties may jointly withdraw or submit compromise to CIAC for award issuance if arbitrators appointed
  • Arbitration fees correspond to the stage of proceedings if arbitration has commenced

Effectivity of Amendments

  • Amendments promulgated by CIAC Commissioners on March 31, 1998
  • Take immediate effect upon adoption

This comprehensive framework governs the administration, selection, qualifications, challenge, and procedural conduct of arbitrators specifically for construction disputes under CIAC's jurisdiction.


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