Emerging vs mature markets
The future...
Emerging markets often feature high-value, complex construction disputes because
Mature markets tend not to have the scale of construction disputes seen in
VS the scale of projects tends to be large, the contractors may not be experienced in that market and a variety of factors may make delivery of the project difficult. International arbitration remains the primary forum for disputes, with a trend towards localisation (e.g. domestic arbitration or local arbitration emerging markets but feature more frequent smaller disputes. Many such jurisdictions have a sophisticated court
– – Multi-tiered dispute resolution procedures, including the use of dispute boards and requirement for mediation – – “Jurisdiction shopping” for construction disputes with the emergence and use of an increasingly diverse number of key arbitral centres around the world – – Enforcement becoming more of an issue (particularly in emerging markets), as the project values get higher and the stakes in disputes get larger Middle East: Implementation of the UAE Federal Arbitration Law (currently in draft form) is expected to modernise and further develop the arbitration framework. A draft Arbitration Law has also been prepared in Qatar. Tanzania: There are suggestions that Tanzania may look to introduce updated arbitration legislation, as the current Arbitration Act has not been updated since before the country’s ratification of the New York Convention.
system that can deal with such disputes; however there remains a consistent trend towards statutory adjudication (ie moving from the UK/ Australia to Singapore /Hong Kong etc).
centres). That said, on government projects, referrals of disputes to local courts is often mandatory.
Last but not least…politics and legislation Brazil: New Brazilian Arbitration Law. Europe: With new States joining the
European Union, these new stakeholders are entering into contracts they are unfamiliar with, and this inexperience can lead to disputes. Hong Kong: The Security of Payment legislation (which is currently under review) is expected to come into effect by 2017.
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