In the UAE, construction projects often encounter disputes due to their scale and complexity. Choosing the right method for resolving these conflicts is vital for achieving a just and efficient outcome. Here, we examine the two main avenues for resolving construction disputes in the UAE: arbitration and court litigation.
Construction disputes frequently arise from delays, payment disagreements, workmanship issues, and breaches of contract terms. The choice between arbitration and court litigation can significantly impact the resolution process.
Arbitration, a private method where disputes are resolved by appointed arbitrators, is governed by the UAE Federal Arbitration Law. It offers confidentiality, industry-specific expertise, flexibility, and international enforceability under the New York Convention. However, arbitration can be costly, especially with multiple arbitrators, and offers limited appeal options.
Conversely, court litigation in the UAE is governed by the UAE Civil Procedures Law. It is more accessible and can be cost-effective for smaller disputes, with opportunities for appeal. Yet, court proceedings are usually public and can be time-consuming. Furthermore, enforcing court judgments internationally can be challenging.
When deciding on a resolution method, consider factors like the dispute’s complexity, the need for confidentiality, and international enforceability. The terms of the construction contract’s dispute resolution clause are also crucial.
Expert legal guidance is essential in navigating construction disputes. Skilled legal professionals provide strategic advice tailored to the specifics of each case, helping to secure favorable outcomes.
By comprehending the distinct attributes of arbitration and court litigation, parties involved in construction disputes can make informed choices to safeguard their interests. Whether seeking the privacy of arbitration or the appeal options provided by court litigation, professional legal counsel remains indispensable.
