Alternative Dispute Resolution

WHAT HAPPENS IF A PARTY TO A CEL CONTRACT CALLS FOR MEDIATION OR ARBITRATION

While no one wants to find themselves in a contract dispute, such a situation may arise despite the best efforts and honest engagement of all parties.  Should such a situation arise during the course of our work under a standard CEL contract [ www.celottawa.ca/COE or www.celottawa.ca/PMCOE , for example ], the following interpretations and procedures apply.

for ACEC-31:
GC 15.4 Unless the parties otherwise agree, any mediation or arbitration under this Agreement will be conducted in accordance with the latest edition of CCDC 40 - Rules for Mediation and Arbitration of Construction Disputes, as applied to and compatible with this Engineering Agreement, save that arbitration will be limited to a single arbitrator.
for ACEC-35:

GC 11.4 Unless the parties otherwise agree, any mediation or arbitration under this Project Management Agreement will be conducted in accordance with the latest edition of CCDC 40 - Rules for Mediation and Arbitration of Construction Disputes, as applied to and compatible with this Project Management Agreement, save that arbitration will be limited to a single arbitrator.

thus we find that CEL contracts require the application of the latest edition of CCDC 40 - Rules for Mediation and Arbitration of Construction Disputes.  This process was agreed to at the time we entered into contract and is not optional.  It is also broadly in line with the general intent in Ontario to move all Construction disputes into an Alternative Dispute Resolution (ADR) process.  While that statutory process does not [yet] apply to consulting contracts within the construction industry, the move to ADR broadly [particularly in seeing the success of ADR in the UK] is the inspiration for CEL's standard contract approach.

CCDC-40 High-level Summary

While the process is best understood through obtaining the document and applying a suitable period of time to preparing for the coming submissions and mediation/arbitration sessions, we hope the following will be of assistance:

-  Communication is open and transparent from the time the Arbitrator is chosen.  See 3.2 Copies to Arbitrator "A copy of all written communications between the arbitrator and a party shall be given to the other party at the same time."  Thus you may expect to be included in all communication with the Arbitrator, and must do the same in turn, ie: include CEL in all communications you have with the Arbitrator.

-  Notice to Arbitration:  While there is a formal process to initiate the mediation or arbitration, generally you may expect CEL to indicate our desire to pursue a mediation or arbitration informally.  This is generally intended to invite the consideration of the other party as to the seriousness of the situation.  Should either party choose to force arbitration, the following will occur:

The sending of a written notice containing the following:
(a) a description of the Contract;
(b) a statement of the issue in dispute;
(c) a request that the dispute be referred to arbitration;
(d) a description of the claim being made;
(e) the name or names of proposed arbitrators, [ resumes ].

-  Appointment of an Arbitrator:  We are expected to come to an agreement on an Arbitrator within 30 days, failing which the dispute is most likely to move to courts of law, such that an Arbitrator may be appointed.

-  Timing:  A procedural meeting will be held within five days of the appointment of the Arbitrator.  The submissions of the claimant are due within fourteen days of that procedural meeting.  The response (counter-claim) is due within fourteen days of receiving the claim.  A response to counter-claim is due within fourteen days of receiving the counter-claim.

-  Costs:  The Arbitrator will, broadly speaking, determine who pays the fees for the arbitration along with any awards.

Contact Us

If you have any questions, you can contact us:

By email: admin | at | celottawa.ca

By mail: 2D-220 Terence Matthews, Ottawa, ON K2M 0E2, Canada