Alternative Dispute Resolution and the Application of the Multitiered Dispute Resolution Clause in the International Construction Sector

Abstract

Construction projects are notoriously complex, and so are the disputes arising out of them. To resolve this complication, a multitiered dispute resolution clause setting out alternative dispute resolution (ADR) mechanisms, such as through a dispute resolution board or mediation prior to arbitration, has an important role to play. Therefore, this paper seeks to contribute to the existing scholarship by focusing on ADR in the world and its specificities in Vietnam regarding these issues as follows. First, this paper presents the variety of ADR forms in the construction sector in the world and in Vietnam. Second, it explores issues arising from the application of the multitiered dispute resolution clause, such as the impact of noncompliance with the prearbitration procedure on arbitral proceedings and arbitral award; determining the statute of limitations period if the parties to dispute followed the prearbitration mechanism prior to arbitration; and finally, considering jurisdiction of the arbitral tribunal as to the enforcement of the solution given from prearbitration step.