Arbitration practice in construction contracts

298 Pages·2001·13.37 MB·English

by  Douglas A Stephenson

Arbitration Practice
in Construction Contracts
Fifth Edition
Douglas A. Stephenson
BSc, CEng, FICE, FIStructE, FCIArb, MConsE
Foreword by
The Rt. Hon. The Lord Saville of Newdigate
b

Blackwell
Science

Arbitration Practice
in Construction Contracts
Also of interest
The Arbitration Act 1996
A Commentary
Bruce Harris, Rowan Planterose
and Jonathan Tecks
Published in conjunction with
The Chartered Institute of Arbitrators
0-632-04131-5
Arbitration Practice
in Construction Contracts
Fifth Edition
Douglas A. Stephenson
BSc, CEng, FICE, FIStructE, FCIArb, MConsE
Foreword by
The Rt. Hon. The Lord Saville of Newdigate
b

Blackwell
Science
8 1982, 1987 Douglas Stephenson and International DISTRIBUTORS
Thompson Publishing; 1993,
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British Library
of this Work has been asserted in accordance with
the Copyright, Designs and Patents Act 3988. ISBN 0-632-05741-6
All rights reserved. No part of this publication may Library of Congress
be reproduced, stored in a retrieval system, or Cataloging-in-Publication Data
transmitted, in any form or by any means, electronic, Stephenson, Douglas A.
mechanical, photocopying, recording or otherwise, Arbitration practice in construction contracts/
except as permitted by the UK Copyright, Designs Douglas A. Stephenson; foreword by the Lord
and Patents Act 1988, without the prior permission of Saville of Newdigate.-5th ed.
the publisher. p. cm.
Includes bibliographical references and index.
First published 1982 ISBN 0-632-05741-6 (alk. paper)
Second edition 1987 1. Construction contracts-Great Britain.
Third edition published 1993 by E & FN Spon 2. Civil engineering contracts-Great Britain.
Fourth edition published 1998 by 3. Arbitration and award-Great Britain. I. Title.
Blackwell Science Ltd
KD1641S73 2001
Fifth edition published 2001 by
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CONTENTS
Foreword ix
Preface to thefifth edition xiii
1 Introduction
1.1 Synopsis
1.2 Definition
1.3 Legal framework
1.4 English law of arbitration
1.5 Advantages of arbitration
1.6 Disadvantages of arbitration
2 Arbitration Agreements 14
2.1 Synopsis 14
2.2 Definition 14
2.3 Separability 15
2.4 Agreements to refer 15
2.5 Ad hoc agreements 15
2.6 Stay of court proceedings 15
2.7 Procedural matters 16
2.8 Arbitration agreements in standard forms
of contract 18
3 Appointment of the Arbitrator 39
3.1 Synopsis 39
3.2 Constitution of the tribunal 39
3.3 Appointment procedure 39
3.4 Qualifications of the arbitrator 41
3.5 Terms of the arbitrator’s appointment 43
3.6 Supplying vacancies 44
4 Jurisdiction of the Arbitrator 45
4.1 Synopsis 45
4.2 Power of arbitrator to rule on own jurisdiction 45
4.3 Revocation of arbitrator’s authority 46
4.4 Power of court to remove the arbitrator 46
V
Contents
4.5 Resignation of the arbitrator 47
4.6 Death of the arbitrator or of the appointing
authority 47
4.7 Power to conduct the proceedings 48
5 The Preliminaries 55
5.1 Synopsis 55
5.2 English law 55
5.3 The preliminary meeting 56
5.4 Procedural directions 68
5.5 Statements of case 68
5.6 Amendments to statements of case 70
5.7 Further and better particulars 71
5.8 The Scott schedule 72
5.9 Disclosure of documents 72
5.10 Privilege 72
5.11 Transcript of the hearing 73
5.12 Arrangements for the hearing 74
5.13 Conduct of the interlocutory stages 74
5.14 Preliminary questions of law 75
5.15 Small claims 76
6 Evidence 78
6.1 Synopsis 78
6.2 Statutes 78
6.3 Kinds of evidence 78
6.4 Admissibility 82
6.5 Privilege 83
6.6 Proofs of evidence 83
6.7 Calling witnesses 84
6.8 Burden and standard of proof 84
7 The Hearing 86
7.1 Synopsis 86
7.2 Attendance 86
7.3 Courtesy 87
7.4 Challenges to arbitrator’s jurisdiction 87
7.5 Representation 88
7.6 Procedure 88
8 TheAward 94
8.1 Synopsis 94
8.2 Procedure 94
vi
Con tents
8.3 Types of award 98
8.4 Format of the award 100
8.5 Notification of the award 108
8.6 Correction of accidental errors 109
8.7 Additional awards 110
9 costs 111
9.1 Synopsis 111
9.2 Statutory provisions 111
9.3 Basis of award of costs 112
9.4 Offers to settle 114
9.5 Failure to award costs 116
9.6 Determination of recoverable costs 117
9.7 Arbitrator’s fees and expenses 118
9.8 Interest on costs 119
10 Powers of the Court in Relation to the Award 120
10.1 Synopsis 120
10.2 Enforcement 120
10.3 Challenges to the award 121
13 Dispute Avoidance and Management 125
11.1 Synopsis 125
11.2 Contract documents 125
11.3 Basic contract law 128
11.4 The construction period: records 132
11.5 Claims 134
11.6 Adjudication 135
11.7 Disputes 140
11.8 Appointment of the arbitrator 141
11.9 Choice of advocate 141
11.10 Offers to settle 142
Appendices 145
A Specimen documents: 147
SD/1 Ad hoc arbitration agreement 148
SD/2 Application for stay of court proceedings 149
SD/3 Exclusion agreement 150
SD/4 Notice to refer and notice to concur 151
SD/5 Application to President to appoint an arbitrator 152
SD/6 Notice of appointment 153
SD/7 Terms of appointment 154
SD/8 Agenda for preliminary meeting 155
vii
Contents
SD/9 Procedural directions 158
SD/10 Statement of claim 161
SD/11 Statement of defence 163
SD/12 Statement of reply 165
SD/13 Scott schedule 166
SD/ 14 Directions letter: small claim 167
SD/15 Proof of evidence 170
SD/16 Agreed award 172
SD/17 Award save as to costs 174
SD/18 Final award 179
SD/19 Notification of award 181
SD/20 Part 36 offer 182
SD/21 Letter of intent 183
B The Arbitration Act 1996 185
C The Arbitration Act 1950: Part I1 235
D The Scheme for Construction Contracts (England and
Wales) Regulations 1998 239
E The Unfair Terms in Consumer Contracts
Regulations 1999 251
F The Unfair Arbitration Agreements (Specified Amount)
Order 1999 261
G Interest Tables
1: Base rates 263
2 Simple interest at 2% above base rate 264
3: Interest at 2% above base rate compounded
monthly 265
4: Use of interest tables 269
Bibliography 272
Table of Cases 273
Index 275

viii