2023 ICC Arbitration: A Closer Look at Construction Sector Disputes

In 2023 890 new cases were registered with the ICC International Court of Arbitration.

Parties from 141 countries were involved in the new cases, showcasing the global reach and diversity of ICC Arbitration. The majority of parties were from North & West Europe (28.8%), followed by North America (12.9%) and Latin America & Caribbean (14.5%).

Parties from Central and South-East Europe (277) represented close to 12% of parties worldwide, with
Türkiye remaining the most represented nationality within the region with 56 cases, followed by Russia (46), Greece (45), Romania and Poland (23 each) and the Czech Republic (20).

Construction and engineering disputes remained a significant portion of ICC’s caseload, making up 21.2% of the total new cases in 2023.

These disputes often stem from several recurrent issues:

• • Contractual Obligations: Disagreements over contract terms, such as scope of work, project specifications, and changes to the contract.
  • Delays: Disputes frequently arise from project delays and the associated costs and penalties.
  • Payment: Issues related to delays or non-payment for services rendered.
  • Quality of Work: Disputes over the quality of construction work and materials used.

The financial stakes were high, with disputes often involving amounts between US$ 1 million and US$ 30 million. The ICC’s Expedited Procedure Provisions were frequently utilized to streamline the resolution process, highlighting the importance of efficiency in addressing these disputes. With parties from diverse regions and significant financial implications, construction disputes underscored the need for expert arbitration to navigate the intricacies of the construction industry effectively.

Equitas advises and provides support to its clients in the construction industry in utilising alternative dispute resolution methods before matters are referred to formal dispute resolution processes. There are various industry guidelines and rules facilitated by several professional institutions.

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Equitas Consulting is a leading specialist consultancy providing high quality expert advisory, claims and dispute management services to the global engineering and construction industry.
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