Fast Track Arbitration in Construction Industry: A Systematic Literature Review Identifying the Key Factors and Challenges for Current Trends

  • Authors

    • Nur Khodijah Muhd Fadhlullah Ng
    • Zulhabri Ismail
    • Norfashiha Hashim
    • Nasyairi Mat Nasir
    2018-11-30
    https://doi.org/10.14419/ijet.v7i4.22.27865
  • Alternative Dispute Resolution (ADR), Fast Track Arbitration, Arbitration, ADR method.
  • In the construction industry, differences in perceptions may exist among project participants, therefore, conflicts are inevitable and can quickly turn into disputes. It can be resolved or settled through litigation and Alternative Dispute Resolution (ADR). Arbitration is the most established and well sought-after method. Even so, the arbitral process takes a long time which leads to the fast track arbitration approach. It is expected that the fast track arbitration approach can minimise the time and optimise the cost. However, to date, there is limited established data on the application of fast track arbitration. The present review is trying to compiled the key factors and challenges of fast track arbitration over the last eight years within the construction industry, from August 2010 to April 2018. The systematic review was limited to eight indicators: i) willingness of parties, ii) delay in proceeding, iii) cost controls, iv) time consuming, v) knowledge and awareness, vi) arbitral tribunal reputation, vii) expertise in arbitration, and viii) clear guideline. Literature searches were conducted using predefined keywords in six major databases, including Hein Online, Elsevier, Web of Science, Lexis Nexis, ASCE, and ProQuest. The abstracts and full-text articles of potentially relevant papers were screened to determine the eligibility. Data was abstracted for 36 eligible articles. The review primarily attempted to seek answers to the following two questions: (1) What are the different research approaches used to study fast track arbitration? (2) What is the status of recent publications on fast track arbitration? This study addresses the recent publications revealing that while fast track arbitration is evolving, there is still a gap in the application of fast track arbitration on its benefits. Thus, the findings may act as a catalyst for conducting further research in this field of study.

     


  • References

    1. [1] AIAC, Expedited Dispute Resolution Through Arbitration – Introducing the Asian International, https://www.aiac.world/news/248/Expedited-Dispute-Resolution-Through-Arbitration-%E2%80%93-Introducing-the-Asian-International-Arbitration-Centre%E2%80%99s-Fast-Track-Arbitration-Rules. Revised March 2018. Accessed July 2018.

      [2] Arbitration Centre’ s Fast Track Arbitration Rules. https://aiac.world/news/248, Revised March 2018, Accessed July 2018.

      [3] Guney, F.H; Onur S.E; Normaan L., Time Is of the Essence: The Evolving Platform for Fast Track Arbitration, Thomson Reuters. http://arbitrationblog.practicallaw.com/time-is-of-the-essence-the-evolving-platform-for-fast-track-arbitration/. Revised January 2017. Accessed Jun 2018.

      [4] Lisa, Allenden. “Expedited Arbitration: Paris v Stockholm : Full Steam Ahead.†Thomson Reuters. http://arbitrationblog.practicallaw.com/expedited-arbitration-paris-v-stockholm-full-steam-ahead/. Revised Feb 2017. Accessed Jun 2018

      [5] Klaus Peter, Berger. The Need for Speed in International Arbitration (Supplementary Rules for Expedited Proceedings of the German Institution Of Arbitration (DIS) ). Journal of International Arbitration 25 (5): (2008) 595–612.

      [6] Singh, H. Construction Dispute Avoidance: The First Line of Defence in Contractual Dispute Management & Resolution. International Construction Week (Ecobuild Southeast Asia 2017). 2017.

      [7] Lee, Chia Kuang, Tak Wing Yiu, and Sai On Cheung. Selection and Use of Alternative Dispute Resolution (ADR) in Construction Projects - Past and Future Research. International Journal of Project Management 34 (3) (2016) 494–507.

      [8] Lu, Wenxue, Lihan Zhang, and Jing Pan. Identification and Analyses of Hidden Transaction Costs in Project Dispute Resolutions. International Journal of Project Management 33 (3): (2015) 711–18.

      [9] Graves, Jack M. Court Litigation over Arbitration Agreements: Is It Time for a New Default Rule? https://digitalco mons.tourolaw.edu/cgi/viewcontent.cgi?article=1477&context=scholarlyworks. Revised 2012. Accessed Jun 2018

      [10] Chong, Heap Yih, and Zin, Mohd Rosli. A Case Study into the Language Structure of Construction Standard Form in Malaysia. International Journal of Project Management 28 (6): (2010) 601–8.

      [11] Kubba, Sam. Litigation and Liability Issues. Handbook of Green Building Design and Construction, (2002) 719–55.

      [12] Deffains, Bruno, Dominique Demougin, and Claudine Desrieux. Choosing ADR or Litigation. International Review of Law and Economics 49: (2017) 33–40.

      [13] Tanielian, Adam. Arbitration Still Best Road to Binding Dispute Resolution. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction 5 (2): (2013) 90–96.

      [14] Jayashinghe, HM, and T Ramachandra. Adjudication Practice and Its Enforceability in the Sri Lankan Construction Industry. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction 8 (1): (2016) 128–35.

      [15] Zhang, Shui Bo, Ya Fan Fu, Ying Gao, and Xiao Dan Zheng. Influence of Trust and Contract on Dispute Negotiation Behavioral Strategy in Construction Subcontracting. Journal of Management in Engineering 32 (2016) 1–1

      [16] Qu, Yingying, and Sai On Cheung. Experimental Evaluation of Logrolling as an Effective Mediating Tactic in Construction Project Management. International Journal of Project Management 31 (5): (2013) 775–90.

      [17] Brown, David. What Steps Should Arbitrators Take to Limit the Cost of Arbitration. Journal of Industrial Arbitration 31 (4): (2014) 499–506.

      [18] Adam, Skinner, Sharpe Zachary, Shafruddin Zara, and Jeng Jefferey. Malaysia: Kuala Lumpur Regional Centre for Arbitration Rebrands As Asian International Arbitration Centre Authors. Jones Day, http://www.theedgemarkets.com/content/kuala-lumpur-regional-centre-arbitration-rebrands-asian-international-arbitration-centre Revised February 2018. Accessed Jun 2018.

      [19] Nadkarni, Nitin, and Singh Darshendev. An Overview of Arbitration in Malaysia. Thomson Reuters (Arbitration World, Sweet & Maxwell International Series). https://www.lexology.com/library/detail.aspx?g=d95e95bc-dab5-41ad-bde0-6d9279fb85a9.Revised November 2015. Accessed Jun 2018.

      [20] Barough, Azin Shakiba, Mojtaba Valinejad Shoubi, and Christopher Nigel Preece. Evaluating the Effectiveness of Mediation and Arbitration Processes in Resolving Disputes in the Malaysian Construction Industry. International Journal of Civil Engineering (IJCE) 2 (1): (2013) 21–28.

      [21] Zuhairah, A.A.G., S. Azlinor, and M.Z. Rozina. Alternative Dispute Resolution in the Malaysian Construction Industry. W113-Special Track 18th CIB World Building Congress, 51 (2010).

      [22] Bell, Adrian, and Aidan Steensma. 2017. “Expedited Arbitration and the Future of International Construction Disputes.†London.

      [23] Mason, Paul E.The Arbitrator as Mediator, and Mediator as Arbitrator. Journal of International Arbitration 28 (541): (2010) 8–23.

      [24] Rose, Cecily. Questioning The Role of International Arbitration in the Fight Against Corruption. Journal of International Arbitration, (2013) 1–75.

      [25] Rosengren, Jonas. Contract Interpretation in International Arbitration. Journal of International Arbitration 30 (1): (2013) 8–23.

      [26] Amaral, Guillherme Rizzo. Burden of Proof and Adverse Inferences in International Arbitration: Proposal for an Inference Chart.†Journal of International Arbitration. (2018)

      [27] Polkinghorne M., Due Process Paranoia: Need We Be Cruel to Be Kind. Journal of International Arbitration 34 (6): (2017) 2011026.

      [28] Scherer and Koepp. Editorial. Journal of International Arbitration 33 (7): (2011) 425–27.

      [29] Kitharidis, Sophocles. Australia’ s Reputation as a Centre for International Arbitration : Wagners Nouvelle Caledonie Sarl v Vale Inco Nouvelle Caledonie Sas Missing a Critical Opportunity to Reverse the Eisenwerk Decision Australia ’ s Reputation as a Centre for International. Bond Law Review 23 (1): (2011) 102–16.

      [30] Puig, Sergio. Social Capital in the Arbitration Market. European Journal of International Law 25 (2): (2014) 387–424.

      [31] Yongkyun, Chung; Hong, Youl Ha. Arbitrator Acceptability in International Commercial Arbitration The Trading Firm Perspective. International Journal of Conflict Management 27 (3): (2016) 379–97.

      [32] López, C. Practical Criteria for Selecting International Arbitrators. J Int’l Arb 31 (6): (2014) 795–805.

      [33] Langford, Malcolm, Daniel Behn, and Runar Hilleren Lie. The Revolving Door in International Investment Arbitration. Journal of International Economic Law 20 (2): (2017) 301–31.

      [34] Harisankar K.S., and Sreeparvathy G. Rethinking Dispute Resolution in Public–Private Partnerships for Infrastructure Development in India. Journal of Infrastructure Development 5 (1): (2013) 21–32.

      [35] Gad, Ghada M., and Jennifer S. Shane. A Delphi Study on the Effects of Culture on the Choice of Dispute Resolution Methods in International Construction Contracts. Construction Research Congress 2012, no. May: 1–10.

      [36] Kaufmann-Kohler, G. Soft Law in International Arbitration: Codification and Normativity. Journal of International Dispute Settlement 1 (2): (2010) 283–99.

      [37] Parlett, Kate. Parties’ Engagement with Experts in International Litigation. Journal of International Dispute Settlement, no. June: (2018) 1–13.

      [38] Park, William W. A Fair Fight: Professional Guidelines in International Arbitration. Arbitration International 30 (4): (2014) 409–28.

      [39] Ong, Colin, Legal Ong, Brunei Services, David A R Williams, and John Walton. Costs and Access to International Arbitration. Arbitration: The International Journal of Arbitration, Mediation and Dispute Settlement 80 (4).(2014).

      [40] Smit Duijzentkunst, Bart L., and Sophia L.R. Dawkins. Arbitrary Peace? Consent Management in International Arbitration. European Journal of International Law 26 (1): (2015) 139–68.

      [41] Beardsley, Kyle, and Nigel Lo. Third-Party Conflict Management and the Willingness to Make Concessions. Journal of Conflict Resolution 58 (2): (2014) 363–92.

      [42] Gent, Stephen E. The Politics of International Arbitration and Adjudication. Penn State Journal of Law & International Affairs 2 (1): (2013) 66–77.

      [43] Phull, Chetan. U.S. Anti-Suit Injunctions in Support of International Arbitration: Five Questions American Courts Ask. Journal of International Arbitration 28 (1): (2011) 21–50.

      [44] Gaillard, E. The Representations of International Arbitration. Journal of International Dispute Settlement 1 (2): (2010) 271–81.

      [45] Kirby, Jennifer. Efficiency in International Arbitration: Whose Duty Is It? Journal of International Arbitration 32 (6): (2015) 690–96.

      [46] Respondek, Andreas. Five Proposals to Further Increase the Efficiency. Journal of International Arbitration 31 (4): (2014) 508–14.

      [47] Wilske, Stephan, and Minogue K. Legal Challenges to Delayed Arbitral Awards.†Contemporary Asia Arbitration Journal 6 (2): (2013) 153–85.

      [48] Fortese, F, and L Hemmi. Procedural Fairness and Efficiency in International Arbitration. Groningen Journal of International Law 3 (1): (2015) 110–24.

      [49] Komurlu, Ruveyda, and David Arditi. The Role of General Conditions Relative to Claims and Disputes in Building Construction Contracts. New Arch-International Journal of Contemporary Architecture 4 (2): (2017) 27–36.

      [50] Hayati, Kemala, Yusuf Latief, Ayomi Dita Rarasati, and Wahyumurti Setya Sasmita. Process of Dispute Resolution in Construction Projects through Arbitration. Journal of Applied Environmental and Biological Sciences 7: (2017) 43–48.

      [51] Vasista. Strategic Cost Management for Construction Project Success : A Systematic Study. Civil Engineering and Urban Planning: An International Journal (CiVEJ) 4 (1): (2017) 41–52.

      [52] Wiegand, Nicolas. Can Asia Cut the Cost? Journal of International Arbitration 34 (3) (2017).

      [53] Rivkin, By David W, and Samantha J Rowe. The Role of the Tribunal in Controlling Arbitral Costs. Arbitration: The International Journal of Arbitration, Mediation and Dispute Settlement 81 (2): (2015) 116–30.

      [54] Gill, Anika, Jason Gray, Martin Skitmore, and Stephen Callaghan. Comparison of the Effects of Litigation and ADR in South-East Queensland. International Journal of Construction Management 15 (3): (2015) 254–63.

      [55] Aliaj, Eldira. Dispute Resolution through Ad Hoc and Institutional Arbitration.†Academic Journal of Business, Administration and Social Sciences 2 (2): (2016) 241–50.

      [56] Marques, Rui Cunha. “Is Arbitration the Right Way to Settle Conflicts in PPP Arrangements?†Journal of Management in Engineering 34 (1): (2018) 1-7.

      [57] Idowu, Falilat Olubunmi, Oyedolapo Ekundayo Ogunbiyi, and Anthony Akinola Hungbo. An Evaluation of the Use of ADR in the Nigerian Public Construction Project Disputes. International Journal of Sustainable Construction Engineering & Technology 6 (1): (2015) 16–28.

      [58] Gunasena, K B Dinesh, and Q S Hons. Performance of Critical Attributes in Alternative Dispute Resolution ( ADR ): A Study in Sri Lankan Construction Industry. Journal of Sri Lankan Quantity Surveyor, (2010)

  • Downloads

  • How to Cite

    Khodijah Muhd Fadhlullah Ng, N., Ismail, Z., Hashim, N., & Mat Nasir, N. (2018). Fast Track Arbitration in Construction Industry: A Systematic Literature Review Identifying the Key Factors and Challenges for Current Trends. International Journal of Engineering & Technology, 7(4.22), 137-145. https://doi.org/10.14419/ijet.v7i4.22.27865