evaluation and improvement of arbitration procedures in the engineering arbitration center in the

175 Pages·2012·8.78 MB·English

The Islamic University-Gaza
Deanery of Higher Studies
Faculty of Engineering
Engineering Projects Management

EVALUATION AND IMPROVEMENT OF ARBITRATION
PROCEDURES IN THE ENGINEERING ARBITRATION
CENTER IN THE GAZA STRIP

Researcher:
Doaa Khalil Yousef Abu Jbara

Supervised by:
Dr. Mohammad Arafa Dr. Mamoun Alqedra

A Thesis Submitted in Partial Fulfillment of the Requirements for Degree of Master
of Science in Engineering projects management

2012
65 ءاسنلا

i
DEDICATION

I would like to dedicate this
work to my husband, kids : Rama, Akram, Lamar and Ayham and to my
family for their endless and
generous support.

Doaa Kh. Abu Jbara.

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ACKNOWLEDGMENTS
 I would like to express my deepest gratitude to my direct supervisors Dr.
Mohammad Arafa and Dr. Mamoun Alqedra for their professional guidance,
useful advice, continuous encouragement, and motivated support that
enabled me accomplishing this thesis.
 Sincere thanks to the staff of Civil Engineering department for their keen
academic supervision and assistance during my study at The Islamic
University-Gaza.
 My best wishes to the experts Eng. Mohammed El Wazeer, Eng. Adel Al
Qazzaz, Advocate Nazem Uwaidah.
 Kind gratitude and sincere acknowledgment to Engineering Arbitration
Center in Engineering Syndicate for assistance and provided valuable
information for this study.
 I wish to express love and gratitude to my beloved Husband and Sons; for
their support, assistance and everlasting love.

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Evaluation And Improvement Of Arbitration Procedures In
The Engineering Arbitration Center In The Gaza Strip
ABSTRACT
Disputes in construction industry are normal and sometimes cannot be avoided. There
are many methods to resolve disputes and arbitration is one of these methods.
Arbitration is considered one of recently regulated dispute resolution methods in
construction in the Gaza Strip.
This study aims to evaluate and improve the Engineering Arbitration Center (EAC)
procedures in the Gaza Strip. This aim achieved by exploring the acceptance level of
construction parties, identifying strengths and weaknesses in EAC arbitration
procedures and then suggesting improvements.
In this research the current EAC engineering arbitration procedures in the Gaza Strip is
investigated and compared to an international and regional arbitration institutions. Fifty
questionnaires were distributed to dispute parties in arbitrated cases in EAC. Results of
34 questionnaires of respondents and 10 interviews with arbitration experts concluded
that:
It is found that costs and time of arbitration in EAC are not satisfying by disputants. It is
also found that arbitration fees are preferred to be paid commensurately with the value
of claims which are awarded to each of the dispute parties with a minimum must be
paid by each dispute party. Respondents of the questionnaire preferred when forming
arbitral tribunal that each of the dispute parties choose an arbitrator from the list of
names of arbitrators determined by EAC, then the parties agree to the arbitral tribunal
president in the case of three arbitrators. It is found that the main obstacles of arbitration
extent are: lack of sufficient awareness of the dispute parties in principles and
procedures of arbitration, not to promote members of the EAC by experts in the field of
arbitral justice and lack of commitment of one of the dispute parties to cover the
financial obligations required for EAC. It is found that there are high level of
acceptance with arbitration procedures in EAC as 91% of respondents will reconsider
EAC for resolution in future disputes.
This study recommended that the arbitration procedures in EAC should be evaluated
periodically for improvements and the website of the EAC should be activated and
developed to publish articles about EAC efforts, services and arbitration magazine
should be issued periodically. It is also recommended that EAC should cooperate with
Palestinian Union of Contractors to conduct workshops and seminars to increase the
contractors awareness of arbitration. Training courses for adopted arbitrators in EAC
and new arbitrators should be conducted and focusing on means and techniques to make
arbitration less costly for the dispute parties. Finally arbitration clauses to arbitrate any
dispute at EAC should be contained in local construction contracts.

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ABSTRACT (ARABIC)
ثحبلا صخلم
v
List of Contents
NO Object Page
Dedication ii
Acknowledgements iii
Abstract in English iv
Abstract in Arabic v
List of Contents vi
List of Tables x
List of Figures xii
Chapter 1: Introduction
1.1 Construction Industry 2
1.1.1 The Construction Industry in the Gaza Strip 2
1.1.2 Disputes in Construction 3
1.2 Research Importance 4
1.3 Research Justification 4
1.4 Research Objectives 5
1.5 Expected Outputs 5
1.6 Research Scope And Limitations 6
1.7 Research Methodology 6
1.8 Outline Contents of the Thesis 6
chapter 2: literature review
2.1 Dispute Resolution Methods 9
2.1.1 Prevention 9
2.1.2 Negotiation 10
2.1.3 Dispute review board 10
2.1.4 Mediation 10
2.1.5 Mini-trial 10
2.1.6 Adjudication 10
2.1.7 Binding Arbitration 11
2.1.8 Litigation 11
2.2 Arbitration 12
2.3 Types of Arbitration 13
2.3.1 Domestic Arbitration 13
2.3.2 International Arbitration 13
2.3.3 Ad hoc Arbitration 13
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NO Object Page
2.3.4 Institutional Arbitration: 14
2.3.5 Statutory Arbitration: 15
2.4 Advantages and Disadvantages of Arbitration 16
2.5 Arbitration in the Construction Industry 19
Chapter 3: Arbitration In The Gaza Strip
3.1 Arbitration in the Gaza Strip 22
3.2 Arbitration Institutions in the Gaza Strip 23
3.3 Engineering Arbitration in Association of Engineers 24
3.3.1 Services Provided by EAC 25
3.3.2 Arbitration Cases In EAC 25
3.3.3 Filing a Case at EAC 27
3.3.4 Obstacles of Arbitration in EAC 27
3.4 Arbitration Procedures of EAC 28
3.4.1 Arbitration Agreement 28
3.4.2 Arbitration Request 30
3.4.3 Arbitral Tribunal Appointment 30
3.4.4 Hearing Sessions 30
3.5 Case Studies 31
3.5.1 Case study No. 1 31
3.5.2 Case study No. 2 34
3.5.3 Case study No. 3 37
3.5.4 Summary of All Cases 41
3.5.5 Comments 42
Comparison of Arbitration Procedures of EAC With Regional and
3.6 42
International Arbitration Centers' Procedures
Chapter 4: Methodology
4.1 Research Design 50
4.2 Research Strategy 52
4.3 Research Methodology 52
4.3.1 Data Collection 52
4.3.2 Questionnaire Population 52
4.3.3 Questionnaire Design and Content 53
4.3.4 Case Studies 53
4.3.5 Interviews 54
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NO Object Page
4.3.6 Pilot Study 54
4.4 Validity of the Research 55
4.5 Content Validity of the Questionnaire 55
4.6 Statistical Validity of the Questionnaire 55
4.6.1 Criterion Related Validity 56
4.6.2 Structure Validity of the Questionnaire 60
4.7 Reliability of the Research 60
4.7.1 Half Split Method 61
4.7.2 Cronbach’s Alpha Coefficient 62
4.8 Statistical Manipulation 62
4.9 Study Limitation 63
Chapter 5: Results and Discussion
5.1 One Sample K-S Test 65
5.2 Data processing and Analysis 66
5.3 General Information 66
5.3.1 Experience of Respondents 66
5.3.5 Company Type 67
5.3.3 Participation in Engineering Arbitration 68
5.3.4 Value of Original Contract 69
5.3.5 Value of Claims Requested 69
5.3.6 Value of Actual Award 70
5.4 Prior Arbitration Procedures 71
5.4.1 Dispute Resolution Methods Before Arbitration 71
5.4.2 Arbitration Agreement 72
5.4.3 EAC Arbitration Fees 72
5.4.4 EAC arbitration Costs 74
5.4.1.5 Arbitral Tribunal Formation Mechanisms 76
5.5 Arbitration Procedures 77
5.5.1 Evaluation of Time Period of the EAC Arbitration Procedures 77
5.5.2 Evaluation of the Performance of the Adopted EAC Arbitrators 78
5.5.3 Causes of Delay in the Arbitration Procedures 80
5.5.4 Representation of Disputants 82
5.6 Arbitration Awarding 82
5.6.1 Arbitration Award 82
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NO Object Page
5.6.2 Arbitration Period of Time 84
5.6.3 The Details in Arbitration Decision 84
5.6.4 Desirable Level of Details in the Awarding 85
5.7 Arbitration Obstacles 86
5.8 Reconsidering EAC for Future Dispute Resolution 89
5.9 formation of Arbitral Tribunal 90
5.10 Distribution of Arbitration Fees Between Dispute Parties 91
5.11 Time Period of Arbitration Process 91
5.12 Causes of Delay in Arbitration Cases 92
5.13 Hearing Sessions 92
5.14 Arbitration Decisions (awarding) 92
5.15 Common questions 93
5.15.1 Spreading the Culture of Arbitration 93
5.15.2 Review of Previous Arbitration Cases 93
Chapter 6:Conclusion and Recommendations
6.1 Conclusion 95
6.2 Recommendations 97
6.3 Proposed Further Studies 98
References 99
Appendix 104

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