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8/15/2019 Arbitration Process and Procedures - 32 Pages
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The
Arbitration
Process
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PROCEDURES
1. Define Claim or Cause of Action2. File Claim (Request for Adjudication)with CIAC
3. Notice to Respondent
4. Answer and Counter-claim
6. Appointment of Arbitrator/Tribunal
7. Terms of Reference
8. Hearings
9. Award
5. Reply
10. Execution
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Define Claims / Causes of Action
Check if Arbitration Clause Provided for inContract
Effect of the Arbitration Clause:- Submission to CIAC Jurisdiction; or
- Failure or Refusal to Arbitrate If none, Agreement to Arbitrate Form should
be executed by the parties
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A G R E E M E N T T O A R B I T R A T E
W e , _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ( N a m e o f C l a i m a n t )
a n d
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
( N a m e o r R e s p o n d e n t )
n o t w i t h s t a n d i n g o u r c o n t r a c t f o r t h e c o n s t r u c t i o n o f
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
( N a m e o f P r o j e c t )
s t i p u l a t i n g f o r t h e s e t t l e m e n t o f d i s p u t e d i s t i n c t f r o m
w h a t i s p r o v i d e d f o r i n E x e c u t i v e O r d e r N o . 1 0 0 8 ,
h e r e b y s u b m i t o u r s e l v e s t o t h e j u r i s d i c t i o n o f t h eC o n s t r u c t i o n I n d u s t r y A r b i t r a t i o n C o m m i s s i o n
( C I A C ) a n d r e q u e s t t h e C I A C t o a r b i t r a t e o u r d i s p u t e
i n s a i d p r o j e c t .
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
( N a m e o f C la i m a n t ) ( N a m e o f R e s p o n d e n t )
B y : B y :
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
S i g n a t u r e o v e r P r in t e d S ig n a t u r e o v e r P r i n t e dN a m e o f A u t h o r i z e d N a m e o f A u t h o r i z e d
R e p r e s e n t a t i v e R e p r e s e n t a t i v e
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MODEL ARBITRATION CLAUSE
“Any dispute arising out of or in connection withthis contract, including any question regardingits existence, validity or termination shall be
referred to and finally resolved by arbitrationunder the Rules of Procedure GoverningConstruction Arbitration promulgated pursuant
to Executive Order 1008 (the ConstructionIndustry Arbitration Law) by (indicate number:one or three arbitrator/s) to be appointed in
accordance with such Rules.”
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Define Claims / Causes of Action
When arbitration cannot proceed
No arbitration clause or agreement to arbitrate
(for private contracts only)
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Filing of Claims with CIAC
Request for Adjudication
Mode of Settlement
Choice of Arbitrators
Sum in Dispute
Documents Required
Arbitration Fees
Schedule of Payment of Fees
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Request for Adjudication
- Submission to Arbitration
- Contents of Request /Complaint
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Request for Adjudication
- Submission to Arbitration
- In Case of Government Contracts
exhausted all administrative
remedies
unreasonable delay on the part of
the government agency
exhaustion of administrative
remedies not practicable
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Request for Adjudication
Contents of Request
Name in Full, Description and Addressesof the Parties
Statement of the Claimant’s Case Relevant Agreements or Contract
Documentations and Information toestablish circumstances of the Case
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Mode of Settlement
Arbitration
Mediation
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Choice / Selection of Arbitratiors
Number of Arbitrators
Sole Arbitrator
Arbitral Tribunal
Disqualification or Non-Acceptance by Nominees
CIAC to Choose
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Qualification of CIAC Arbitrators
Men of Distinction Technically Qualified
Trained and Accredited by CIAC
PICA Member
Professionals with Experience in
Construction Disputes and nuances
thereof
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Selection of Arbitrators
Choice/Selection of Arbitrators
- availability, case load, nature of case
Challenge:
Partiality, bias, incompetence, or
professional misconductCIAC to rule within 15 days
When arbitrator previously acted asconciliator/mediator of the same dispute
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Claims/ Causes of Action
Sum in Dispute
- Claim of Claimant
- Counter-claim of Respondent
- Other Costs
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Claims / Causes of Action
Claim for Sum of Money0 Non-payment of Claims/Billings
0
Unreasonable imposition of LD0 Change-orders and Extra Work
0
Liquidated damages Non-monetary claims
0
Illegal take-over of Works0 Interpretation of Contract Documents
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CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
FOR MONETARY CLAIMS
I. SCHEDULE OF FILING AND ADMINISTRATIVE FEES
SUM IN DISPUTE FILING FEE ADMINISTRATIVE FEE
Less than P 100,000.00 P 3,600.00 P6,000.00
P 100,000.00 to P 1M P 3,600.00 + 0.36% of P 6,000.00 + 0.24% of excess over 100,000 excess over 100,000
P 1.0M to P 10.0M P 6,840.00 + 0.12% of P 8,160.00 + 0.12% of
excess over P 1.0M excess over P 1.0M
P 10.0M to P 50.0M P 17,640.00 + 0.06% of P 18,960.00 + 0.06% of
excess over P 10.0M excess over P 10.0MMore than P 50.0M P 41,640.00 + 0.03% of P 42,960.00 + 0.03% of
excess over P 50.0M excess over P50.0M* Pursuant to C IAC Resolution No. 2-96, a special assessment fee, for the establishment of
Arbitration Development Fund, Equivalent to 1/10 of 1% of the Sum in Dispute (SID) shall be
imposed on SID over P 1 Million.
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CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEESII. ARBITRATOR’S FEES
The honoraria of the Arbitrators shall consist of a Base Amount plus Adjustments to reflectcomplexity of the case, number of disputants and number of arbitrators.
1. BASE AMOUNT
≤ P1M - 2% of the Sum in Dispute
over 1M - 5.0 M - P20,000.00 + 1.00% in excess of 1.0 Mover 5M - 10.0 M - 60,000.00 + 0.75% in excess of 5.0 M
over 10M - 20.0 M - 97,500.00 + 0.50% in excess of 10.0 M
over 20M - 50.0 M - 147,500.00 + 0.20% in excess of 20.0 M
over 50M - 100.0 M - 207,500.00 + 0.10% in excess of 50.0 M
over 100M - 500.0M - 257,500.00 + 0.05% in excess of 100.0 Mover 500M - 1Billion - 457,500.00 + 0.035% in excess of 500.0 M
Above 1 Billion - 632,500.00 + 0.025% in excess of 1 Billion
As amended by CIAC Resolution No. 05-2009 (Approving Additional Ranges and Base
Amounts for Arbitrator’s Fees); Effective 04 July 2009
______________________________________________________________________________
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CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
III. SCHEDULE OF PAYMENTS
A. Upon filing of the Request for Adjudication (RFA)
⇒ 100% Filing Fee⇒ 50% Adminstrative Fee
⇒ Initial Deposit for Arbitrator’s Fees
• 50% of arbitrator’s fees based on amount of claim
• Respondent to deposit similar amount based on
his counterclaim, if any
⇒ special assessment fee under CIAC Res. No. 2-96, if applicable
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CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
B. Upon signing of the Terms of Reference (TOR):
⇒ Balance of the Filing Fee
⇒ 50% of the Administrative Fee
⇒ 50% of the Arbitrator’s Fee
C. At the Penultimate Hearing / Meeting:
⇒ 50% of the Administrative Fee
⇒ 50% of the Arbitrator’s Fee
* If no hearing is held, the last two tranches (B & C) shall be due upon
TOR signing
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PRELIMINARY CONFERENCE
- Matters to be discussed
Possibility of Amicable Settlement
Necessity of Amendments to Pleading
Stipulations and admissions of facts
Limitations on the number of Witnesses
Simplification of Issues
Other Matters
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Terms of Reference
Contents
Signing of the Terms of Reference
Arbitration to Proceed even without the
Terms of Reference
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Contents of the Terms of Reference
Full names of Parties and their Personal
Circumstances
Addresses for Notification / Communication
Summary of Respective Claims
Definition of Issues
Position of Disputants per Issue
Arbitrators
Schedule of Payment of Fees
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TERMS OF REFERENCE (TOR)
a) full name of the parties and their personal circumstancesb) address of the parties to which notifications or
communications arising in the course of the arbitration may
validly be made
c) summary of the parties’ respective claimsd) definition of the issues to be determined
e) arbitrator(s)’ full names and addresses
f) place of arbitrationg) breakdown, schedule of payment and sharing of arbitration
fees
h) such other particulars as may be required to make thearbitral award enforceable in law, or may be regarded as
helpful by the CIAC or the arbitrator(s)
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TERMS OF REFERENCE (TOR) Arbitration to Proceed without Terms of Reference
- If one of the parties refused to sign
- The Parties agreed that the issues and mattersraised in their pleadings are deemed submittedfor resolution without further evidence.
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TERMS OF REFERENCE (TOR)Signing of the Terms of Reference
- 15 days after preliminary conference
- 3 days after signing transmitted to CIACSecretariat
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What to be ready with
Well Prepared
Complete and Proper Documentations
Technically Correct
Logically Presented
Credible Witnesses
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What to Expect
Integrity
Speed
Fairness
Writ of Execution
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ARBITRABLE ISSUES
1. Violation of specifications for materials andworkmanship
2. Violation of the terms of agreement
3. Interpretation and/or application of contractual provisions
4. Amount of damages and penalties
5. Commencement time and delays6. Maintenance and defects7. Payment default of employer or contractor8. Changes in contract cost
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ACCREDITATION OF
CONSTRUCTION ARBITRATOR
1. MINIMUM REQUIREMENTS:
1.2 Holder of a Bachelor’s degree in Engineering,
Architecture, Law or Accountancy ;
1.3 Licensed to practice his/her profession ;
1.1 At least 40 years of age at the time of application ;
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ACCREDITATION OF
CONSTRUCTION ARBITRATOR
1.4 At least ten (10) years in the practice of his/her profession and ten (10) years of work experience in
construction management-related activities or in
handling of contractual disputes and/or contract
negotiations ;
1.5 In full enjoyment of his/her civil rights, must not have
been convicted of a crime involving moral turpitude or
of any other crime for which the penalty imposed upon
him/her is over six (6) months of imprisonment.
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ACCREDITATION OF
CONSTRUCTION ARBITRATOR
1.6 Willing to undergo all screening requirements1.7 Willing to undergo training to be conducted by the CIAC.
2. EXCEPTIONS :
2.1 Exceptional professionals who have substantially
complied with the minimum requirements 1.1 to 1.6,
and who by reason of trainings or experiences in
construction, conducted lectures on accreditation
courses upon invitation by the CIAC.