FIDIC / Legal Reference: FIDIC Red Book Clause 20.6
A private form of adjudication in which a dispute is resolved by one or more arbitrators whose decision (the Award) is final, binding, and enforceable in most countries under the New York Convention 1958. Arbitration is the dominant method of final dispute resolution in international construction contracts.
What it means in practice
Under FIDIC Clause 20.6, disputes that cannot be resolved through the DAB and amicable settlement are finally settled by international arbitration. In UAE construction contracts, DIAC, ICC, and LCIA are the most commonly selected arbitral institutions. The choice of seat affects which law governs the arbitration procedure and which courts can supervise and enforce the award.
International arbitration awards are enforceable in over 170 countries under the New York Convention. In the UAE, Federal Arbitration Law No. 6 of 2018 governs UAE-seated arbitrations and is broadly aligned with the UNCITRAL Model Law.
Where disputes arise
Common grounds for challenging arbitral awards in the UAE include: breach of natural justice, the award going beyond the scope of the arbitration agreement, and conflicts with UAE public policy.
UAE Context
DIAC is the most active construction arbitration institution in the UAE. Its 2022 Rules introduced an emergency arbitrator procedure, expedited arbitration for claims under USD 1 million, and enhanced multi-party provisions — all particularly relevant to construction.
Related terms
e-Basel acts as arbitrator and provides expert witness and claims advisory services for UAE and international construction arbitrations. Contact us to discuss your dispute.
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