As of today most contracts have an arbitration clause in it. If a conflict arises on a large project or between any two parties, it now appears to be almost obligatory to include a roadmap for dispute resolution.
Omani Arbitration Law governs the arbitration process. Disputes arising from gross violations of material and workmanship specifications, non-fulfillment of contractual obligations, incorrect interpretation and understanding of contractual provisions, delay in the start-up of construction processes, failure to maintain and defects, or payment defaults on the part of the contractor or person employing the workforce are all covered by construction arbitration.
Obstacles that might come, affecting the fluid arbitration process;
1.Fluid Cooperation with arbitrators –
Now-a-days, almost all slandered projects in Oman, adopt Arbitration as a dispute resolution process as a means to settle disputes. Mostly project or consultant engineers are appointed as arbitrators when it comes to construction disputes as per the arbitration clause. However, it is also permitted to involve third party law personal to solve dispute. But everything requires proper coordination.
Article 1/C of Oman’s standard documents for building and civil engineering works and other standard documents mention to refer the matter to the engineer and then to an arbitrator. It also requires engineer to give a written consent concerning a dispute within 90 days.
2. Check on effectiveness of Arbitrators –
Those persons should be selected who have the knowledge of the subject matter Those persons should be selected who had the knowledge of the subject matter of the current dispute held also effectiveness of arbitrator is must see to be checked. If it is found that the person is elected as an arbitrator does not have the knowledge adequate and skills for achieving arbitration process, they can be replaced.
Under Omani arbitration law specific rules are mentioned on the grounds of replacing and challenging the arbitrators.
Alternative dispute resolution forums
All types of arbitrative disputes are permitted to settle disputes in Oman.
Negotiated amicable settlements are however more popular in Oman as against Orthodox ADR methods such as Conciliation, mediation and adjudication. Some of the ADR are not commonly used at Oman’s construction sites such as Dispute reviewing board.
But conciliation through Ministry of justice and arbitration are most commonly referred to resolve construction disputes in Oman.
The conciliation and the settlement law of 2005 entitles the conflicting parties to refer Their disputes to the Committee of conciliation and settlement which is administered by Ministry of Justice.
To avail the benefit of the same and application is to be submitted which is free of any charge before any of the court and the commission intends to settle the dispute within 60 days.
Omani Legislature has done certain steps to comply with modern arbitration rules like,
Oman Enacted the arbitration law in 1997,
adopted UNICTRAL Model Law of 1985 and
ratification with ICSID convention in 1999 which made many foreign investors to settle disputes with Omani government by international arbitration
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