Dispute Resolution

For Dispute Resolution, there are more methods provided in FIDIC compared with HKIA form. Arbitration is the sole method in HKIA form. Arbitration is a legal process and the award of arbitrator is finalized and binding. Apart from the arbitration, Disputes Adjudication Board and amicable settlement can be adopted in FIDIC. Before going to the arbitration, DAB shall be carried out in advance. It is a smoother way compared with arbitration and it can save more cost and time if the disputes can be settled successfully by adopting this method. Detailed procedures of DAB are also stated in FIDIC to ensure that the adopter can understand the process. FIDIC is more favourable in choosing methods of dispute resolution.

For the time to carry out the arbitration, it can be carried out before or after the completion of works in FIDIC. In HKIA form, the arbitration shall be carried out after the practical completion or termination. Construction work is complicated and there are many unpredictable events. If adoption of FIDIC, the Contractor can apply the arbitration during the construction process and it may delay the completion of work because the time may be used to settle the disputes. After practical completion, that means the Contractor finish the work majorly, the disputes arising from construction work can be at once settlement compared with separate settlements. Therefore, HKIA is more favourable in the time to carry out the arbitration.

To conclude, FIDIC shall be favourable in this field because it allows smoother dispute resolution methods. However, it may need to amend the time to carry out the arbitration.