The ICC has published its 2018 dispute resolution statistics. Out of 842 new arbitration cases registered in 2018 224 involved disputes from the construction and engineering industry. This is a new record for the industry. Turkey remains the most represented nationality within Central and Eastern Europe with 62 parties.
Another interesting development is that in 2018 the ICC International Centre for ADR received a total of 70 new cases registered under the Mediation Rules, Expert Rules, Dispute Board Rules and DOCDEX Rules. Of these, 37 new cases concerned requests for mediation services and 24 for services related to experts. As in arbitration demand from the construction sector was the highest and the largest demand came from Turkish parties as regards the expert services.
These two sets of information indeed, tell us something about the disputes concerning the construction industry and the Turkish contractors; while the ICC arbitration seems to remain as the main type of dispute resolution for Turkish contractors, alternative methods are also getting tried by the industry. Mediation for example, is a non-adjudicatory method of dispute resolution and a relatively new area for the Turkish international contractors.
Mediation is a means of alternative dispute resolution whereby an independent person (mediator) assists the parties to negotiate and resolve the dispute cost effectively and promptly. As such it is relatively informal, confidential and consensual i.e. resolution based on party interests rather than legal rights. The participants should therefore have some training and experience.
Expert determination on the other is a process whereby the parties agree to refer the dispute to an independent third party who is an expert in the subject to give a binding decision on the dispute.
Equitas Consulting experts and consultants have significant experience in various types of alternative dispute resolution methods.
Our article published in the CIOB magazine.