Construction disputes are technically complex and financially heavy: project defects, missed deadlines, unfinished works and quality arguments demand a fast and qualified resolution. That is why construction contracts frequently contain an arbitration clause, and in Georgia the proceedings are governed by the Law on Arbitration. On this page we explain Articles 11, 17 and 34 of that law — the appointment of arbitrators, interim measures and the appointment of an expert — through the prism of a construction dispute: how to choose a panel with technical competence, how to preserve the condition of the site until the award, and how specific issues are settled by expert examination.
Appointment of Arbitrators and Qualification Requirements (Article 11)
Under the first paragraph of Article 11, it is impermissible to appoint a person as arbitrator without his or her consent, and consent to act as arbitrator must be declared in writing. The appointment procedure is determined by agreement of the parties; absent an agreement, a default applies: where the arbitration is composed of three arbitrators, each party appoints one arbitrator, and the two arbitrators appointed in this way choose the chairperson. If a party fails to appoint an arbitrator within 30 days of receiving the other party’s request, or if the two arbitrators fail to agree on the third within 30 days of their appointment, the court, on the basis of a request by a party, appoints the arbitrator within 30 days of accepting the application; this court decision is final and not subject to appeal. Particularly important for construction disputes is paragraph 6: when appointing an arbitrator, the court or other institution must take into account the qualification requirements agreed by the parties — a requirement of construction experience written into the clause in advance thus operates at the appointment stage as well.