When a dispute arises under a construction contract, the parties must look into the dispute resolution mechanism enshrined in the contract and follow such. Sometimes, a party is overzealous; in that instance, he initiates a dispute resolution mechanism alien to the contract. In some other instances, parties must ensure that all the resolution mechanisms in the contract are exhausted precept after precept otherwise, any mechanism initiated either prematurely or alien to the contract would be stalled, and time and resources would have been wasted. It is thus, of great importance for parties to study the dispute resolution process prescribed in the contract and follow it strictly.
Another matter to look out for in dispute resolution is language. Generally, most contracts have the language of the contract stipulated. where the language of the contract is not specifically stated, the language of the wording of the contract suffices. Again, the language of the contract may vary from the language of a resolution process. For example, the language of an arbitration process/proceedings may be different from the language of the contract if specifically indicated as such. Where therefore the language of a resolution process is not stated, most arbitration rules provide that the language of the contract will suffice.
In 2009, I led an arbitration process for a construction company I worked for in Dubai. It was against one of our subcontractors at that time. The arbitration process was before Dubai International Arbitration Centre (DIAC). A matter arose where the subcontractor made his written submissions in Arabic language and it means I will require licensed translators to work on this before I could respond to any matter raised therein. It thus means that I may be forced to make my submissions on behalf of my employer, in Arabic. I then raised an objection as to “the language of the arbitration”. I submitted that our arbitration agreement (even though, it’s just two paragraphs in the subcontract agreement) was worded in English language, thus, according to DIAC rules, the language of the arbitration process should be in English. The objection was sustained, and the subcontractor complied. We progressed the arbitration in English language.
Very informative.