Arbitrations are a common dispute resolution procedure used by parties for construction disputes. However, the arbitration process (like unsupervised court proceedings) can be slow and costly, particularly if either of the parties adopt 'go slow' tactics.
On 1 June 2007, the Institute of Arbitrators & Mediators Australia (IAMA) launched a new set of rules, which aim to reduce the costs associated with arbitrations and provide the parties with quick determinations. This is to be achieved through improvements to the quality of information considered during the arbitration process and the introduction of regimented time-frames for the interlocutory steps of the arbitration. The new procedure is the IAMA Fast Track Arbitration Rules (Fast Track Rules).
The objective of the Fast Track Rules is to enable an arbitrator to produce an award within 150 days after the arbitrator accepts an appointment and enters on the reference as the arbitrator. However, the period in which a party must act can be extended by agreement, or by the arbitrator for up to 10 days.
The Fast Track Rules will only apply to an arbitration if the parties agree to adopt this procedure to resolve a dispute. The Fast Track Rules will not suit all disputes, for example complicated, multi-faceted disputes.
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