Engineering Arbitration and the Role of Consulting firms and Procedures Followed

Introduction

Engineering arbitration is one of the alternative means for resolving technical and engineering disputes, which often arise in construction projects and engineering contracts. In the Kingdom of Saudi Arabia, engineering arbitration has gained increasing importance, especially with the urban expansion and mega-projects launched under "Saudi Vision 2030." This has necessitated a pivotal role for Consulting firms and specialized consulting offices in this field. "Fadha Engineering Consultants" is among the offices with extensive experience in this field, contributing significantly to many engineering arbitration cases, being an accredited Consulting firm supported by a team of certified experts.

Definition of Engineering Arbitration

Engineering arbitration is a specialized form of arbitration concerned with resolving disputes of a technical nature in areas such as contracting, design, execution, maintenance, and materials. It involves resolving conflicts between disputing parties through specialized arbitrators with technical expertise instead of resorting to traditional courts. Consulting firms may also be consulted in cases related to engineering disputes.

Regulatory Framework in Saudi Arabia

The Saudi Arbitration Authority and the Saudi Center for Commercial Arbitration (SCCA) oversee many arbitration procedures, including engineering arbitration. These procedures are governed by the Saudi Arbitration Law issued in 1433 AH (2012 AD), which is largely aligned with the UNCITRAL Arbitration Rules. Arbitration has been given an official status and is recognized by Saudi courts, and its awards can be enforced once approved by the judiciary.

Role of Consulting firms and Consulting Offices

Consulting firms and designated consulting offices play a vital role in engineering arbitration processes due to their high technical capabilities and specialized teams capable of analyzing disputes and providing impartial technical opinions.

Key Roles Played by Consulting firms:

1. Providing Neutral Technical Expertise:
2. Reviewing drawings, specifications, and plans.
3. contracts, technical annexes, and correspondence.
4. Evaluating executed works for compliance with conditions.
5. Preparing Well-Structured Technical Reports:
6. Objective technical reports submitted to the arbitration panel or court.
7. Include opinions based on approved specifications and standards.
8. Participating in Arbitration Hearings:
9. Presenting technical opinions before arbitrators.
10. Responding to technical inquiries from the parties or arbitration panel.
11. Conducting Site Visits:
12. Inspecting the disputed site.
13. Documenting current conditions and preparing field reports.

Arbitration Steps Followed by Consulting firms or Professional services firms:

1. Receiving the Official Assignment:
2. From the arbitration panel or one of the disputing parties, with a defined scope of work.
3. Gathering Information and Documents:
4. Reviewing all related contracts, correspondences, drawings, and documents.
5. Dispute Analysis:
6. Identifying the technical points of contention.
7. Reviewing relevant contractual and technical clauses.
8. Site Visit (if required):
9. Inspecting completed works.
10. Documenting technical status with evidence and photos.
11. Preparing the Technical Report:
12. Includes technical analysis, recommendations, and damage assessment (if any).
13. Written in a neutral and professional tone, referencing all approved technical and legal sources.
14. Participating in Arbitration Sessions:
15. Presenting and defending the technical viewpoint.
16. Answering questions from the parties and arbitrators.
17. Follow-up Until the Final Award:
18. Providing additional clarifications upon request.
19. Sometimes updating the report after hearings.

Importance of Engineering Arbitration:

1. Reduces time and cost compared to litigation.
2. Leverages precise technical expertise that general courts may lack.
3. Speeds up dispute resolution and restores project or contractual stability.
4. Flexibility in selecting arbitrators and experts according to the dispute’s specialty.
5. 
   

Finally:

Engineering arbitration in Saudi Arabia represents an effective tool for resolving complex technical disputes, contributing to faster project delivery and loss reduction. Consulting firms and consulting offices play an indispensable role in providing impartial technical opinions that enhance justice and improve the quality of arbitration awards. With the continued rise in mega-projects across the Kingdom, the role of these entities is expected to grow rapidly in the coming period.