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Analysis

Construction contract disputes: court or arbitration?

By LÊ THỊ LỆ DUYÊNManaging Partner

Construction contract disputes: court or arbitration?

The forum you choose when signing the contract drives the time, cost and enforceability of the eventual outcome.

Dispute resolution clauses are usually negotiated last and given the least attention, yet they determine how a conflict is handled once it arises.

Commercial arbitration

The advantages are procedural flexibility, a single instance, confidentiality and the ability to appoint arbitrators with construction expertise. The drawback is a higher upfront cost.

Courts

Court fees are lower and there is a two-tier system, but proceedings usually take longer and judgments are public.

For high-value contracts, those with a foreign element, or heavily technical ones, we generally recommend arbitration.

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