Multi-Party and Multi-Contract Arbitration in the Construction Industry

Title Page

Copyright Page

Contents

About the Author

Foreword

Preface

Acknowledgements

List of Abbreviations

Chapter 1 Introduction

1.1 General background and research problem

1.2 Scope of the book, limitations and literature review

1.2.1 Scope of the book

1.2.2 Limitations

1.2.3 Literature review

1.3 Sources used

1.4 Structure of the book

1.5 Aims and contribution of the book

Chapter 2 Multi-Party Arbitration in General

2.1 Terminology notes

2.1.1 Definition of multi?party arbitration

2.1.2 Multi-party and multi?contract arbitration: divergent or similar concepts?

2.1.3 Group of contracts doctrine

2.2 Legal techniques introducing multi-party arbitration

2.2.1 Single request for arbitration

2.2.2 Joinder

2.2.3 Intervention

2.2.4 Consolidation

2.3 Advantages of multi-party arbitration

2.3.1 Avoids risk of inconsistent findings

2.3.2 Less time and fewer costs

2.3.3 Fewer factual errors

2.4 Obstacles to multi-party arbitration

2.4.1 Consensual nature of arbitration

2.4.2 Arbitration as a two-party setup

2.4.3 Arbitration as a confidential process

2.4.4 Setting aside proceedings and non-recognition and?/?or non-enforcement of arbitral awards

2.4.5 Practical difficulties

Chapter 3 The Need for Multi-Party Arbitration in the Construction Sector

3.1 Specifics of construction disputes and construction arbitration

3.2 Introduction to international standard form construction agreements

3.2.1 FIDIC Conditions of Contract

3.2.2 NEC contracts

3.2.3 ICC contracts

3.2.4 ENAA model forms

3.2.5 IChemE contracts

3.2.6 PPC International and SPC International

3.3 Contractual structures in construction projects

3.3.1 ‘Build-only’ projects

3.3.2 ‘Design-build’ or ‘turnkey’ projects

3.3.3 Construction management

3.3.4 Management contracting

3.3.5 ‘Design-build-operate’ (‘DBO’) model

3.3.6 Partnering and alliancing

3.4 Parties’ interests in multi-party arbitration

3.4.1 Employer

3.4.2 Contractor

3.4.3 Subcontractor

3.4.4 Designer

3.4.5 Engineer

3.4.6 Suppliers

3.4.7 Technical consultants

3.4.8 Guarantors

3.4.9 Concluding remarks

Chapter 4 Multi-Party Arbitration Solutions under Arbitration Rules

4.1 ICC Rules

4.1.1 Multi-contract claims and prima facie assessment

4.1.2 Joinder

4.1.3 Consolidation

4.2 CEPANI Rules

4.2.1 Multiple parties and multi-contract claims

4.2.2 Joinder and intervention

4.2.3 Consolidation

4.3 LCIA Rules

4.4 UNCITRAL Rules

4.5 Swiss Rules

4.5.1 Prima facie test

4.5.2 Consolidation

4.5.3 Joinder and intervention

4.6 Rules adopted by the American Arbitration Association (‘AAA’)

4.6.1 Construction Industry Arbitration Rules (‘CIAR’)

4.6.2 ICDR Rules

4.7 Vienna Rules

4.7.1 Joinder

4.7.2 Consolidation

4.8 DIS Arbitration Rules

4.9 SCC Rules

4.10 DIA Rules

4.11 Arbitration rules in Asia

4.11.1 CIETAC Rules

4.11.2 SIAC Rules

4.11.3 HKIAC Rules

4.11.4 JCAA Rules

4.12 Concluding remarks regarding arbitration rules

Chapter 5 Multi-Party Arbitration Solutions under Arbitration Laws

5.1 UNCITRAL Model Law

5.2 The United Kingdom

5.3 The Netherlands

5.4 Belgium

5.5 New Zealand

5.6 Hong Kong

5.7 Canada

5.8 Australia

5.9 Other countries

5.10 Multi-party arbitration in the United States

5.10.1 Legal framework

5.10.2 United States’ case law on multi-party arbitration

5.11 Should arbitration laws deal with multi-party arbitration?

5.12 Concluding remarks regarding arbitration laws

Chapter 6 Contractual Solutions to Multi-Party Arbitration

6.1 FIDIC Conditions of Contract

6.2 Blue Form

6.2.1 Clause 18(2) of the 1984 Blue Form

6.2.2 Use of the Blue Form in conjunction with the FIDIC Conditions of Contract

6.2.3 Commentary on clause 18(2)

6.2.4 Clause 18(8) of the 1991 Blue Form

6.2.5 Clause 18(10) of the 1998 Blue Form

6.2.6 Clause 18C(4) of the 2008 Blue Form

6.3 JCT Contracts

6.3.1 JCT 80 approach to multi-party arbitration

6.3.2 Commentary on the JCT 80 approach

6.3.3 New JCT approach

6.4 ACA standard forms

6.5 NEC3

6.5.1 Main contract provisions

6.5.2 Subcontract provisions

6.5.3 Do NEC3 provisions create a self-contained mechanism for joint adjudication?

6.5.4 Compatibility between the joint adjudication provisions and the dispute notification requirements

6.6 IChemE contracts

6.7 ICC contracts

6.8 PPC and SPC International

6.9 ENAA Model forms

6.10 AIA standard forms

6.11 ConsensusDocs

6.12 AB 92 and ABT 93

6.13 Concluding remarks regarding contractual approaches

Chapter 7 Proposed Solutions

7.1 Jurisdictional approach

7.2 Abstract consensual approach

7.3 Proposed contractual solutions

7.3.1 IBA guidelines for Drafting International Arbitration Clauses

7.3.2 AAA Guide to Drafting Alternative Dispute Resolution Clauses for Construction Contracts

7.3.3 Drafting Multi-Party Arbitration Clauses

7.3.4 Sample multi-party arbitration clause

7.4 Institutional approach

7.4.1 How to create a workable multi?party arbitration mechanism under arbitration rules?

7.4.2 Compatibility of arbitration agreements

7.4.3 Other circumstances

Chapter 8 Conclusion

Appendix 1 Second Alternative Clause of Clause 20 of the FIDIC Subcontract

20 Notices, Claims and Disputes

20.1 Notices

20.2 Subcontractor’s Claims

20.3 Unrelated Claims

20.4 Related Claims

20.5 Failure to Comply

20.6 Subcontract Disputes

20.7 Unrelated Disputes

20.8 Related Disputes

20.9 Employer’s Claims under the Subcontract

Appendix 2 Multi-Party Arbitration Provisions under the Blue Form

I. FCEC Form of Sub-Contract (Revised September 1984), for use inconjunction with the ICE Contract, 5th Edition

II. FCEC Form of Sub-Contract (September 1991, prior to the 1998amendments), for use in conjunction with the ICE Contract, 6th Edition

III. FCEC Form of Sub-Contract (September 1991, as amended in 1998),for use in conjunction with the ICE Contract, 6th Edition

IV. CECA Form of Sub-Contract (November 1998, as amended in June2008), for use with the ICE Contract

Appendix 3 Multi-Party Arbitration Clauses under the ENAA Model Form – International Contract for Process Plant Construction, 2010 and Related Subcontracts

I. Multi-Party Arbitration Clause to be inserted in the Special Conditionsto the ENAA Model Form – International Contract for Process PlantConstruction, 2010

II. Multi-Party Arbitration Clause to be inserted in sub-contractswith Sub-contractors and suppliers

Bibliography

Index

EULA