Institutional versus ad hoc arbitration in construction disputes
Produced in partnership with Mayer Brown International LLP
Institutional versus ad hoc arbitration in construction disputes

The following Construction guidance note Produced in partnership with Mayer Brown International LLP provides comprehensive and up to date legal information covering:

  • Institutional versus ad hoc arbitration in construction disputes
  • What is institutional arbitration?
  • What is ad hoc arbitration?
  • Pros and cons of institutional and ad hoc arbitration
  • Construction Industry Model Arbitration Rules
  • The appointment of arbitrators in the construction industry

Arbitration can be conducted under either self-administered ad hoc or institutional procedures and rules. In practice, the use of ad hoc or institutional arbitration varies from industry to industry, and depends on the nature of the dispute in question.

This Practice Note considers the differences between institutional and ad hoc arbitration, particularly in the construction industry, and the advantages and disadvantages of each. For further guidance on institutional and ad hoc arbitration more generally, see Practice Note: Comparing institutional and ad hoc arbitration.

What is institutional arbitration?

Institutional arbitrations are administered by an arbitration institution and are conducted within the framework of the rules and procedures of the specific institution. Generally, the contract between the parties in dispute will contain an arbitration clause which identifies a particular institution as the arbitration administrator.

The institutions most commonly used are the:

  1. International Chamber of Commerce (ICC)

  2. London Court of International Arbitration (LCIA)

  3. Dubai International Finance Centre (DIFC)

  4. Singapore International Arbitration Centre (SIAC)

  5. Hong Kong International Arbitration Centre (HKIAC)

What is ad hoc arbitration?

The opposite of institutional or administered arbitration is a so-called ad hoc arbitration. In its most extreme form, an ad hoc arbitration is regulated entirely by procedural rules devised by the parties themselves. This means that the parties choose the arbitrators, there is no arbitral institution supervising the conduct