Emerging vs mature markets
The future...
Emergingmarkets oftenfeaturehigh-value, complexconstruction disputesbecause
Mature markets tend not to have the scale of construction disputes seen in
VS thescaleofprojects tendstobelarge,the contractorsmaynot beexperiencedinthat marketandavariety offactorsmaymake deliveryoftheproject difficult.International arbitrationremains theprimaryforumfor disputes,withatrend towardslocalisation(e.g. domesticarbitration orlocalarbitration emerging markets but feature more frequent smaller disputes. Many such jurisdictions have a sophisticated court 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).Thatsaid,on governmentprojects, referralsofdisputes tolocalcourtsisoften mandatory.
– – 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.
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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