With the increasing use of arbitration as the preferred mode of
dispute resolution and with a booming real estate sector in India,
the intersection of the two is inevitable. Given the complexity of
construction disputes, it has become widely known that arbitration
is a far more efficacious method of resolving disputes as opposed
to the traditional adversarial systems, such as courts. Before we
can analyse watershed case laws on the topic, it is important to
understand why arbitration is in fact a suitable means of resolving
disputes in the construction sector.
Applicability of Arbitration: Construction
disputes can be attributed to certain reasons as to why they occur,
firstly, due to the ambiguous terms of the contract or
technical hindrances or force majeure events; secondly,
employer or contractor failing to understand their obligations
under the contract, thirdly, organisation behaviour within
the project. Unique nature of construction in so far as they
involve