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First:  If, during the arbitration proceedings, the parties resolve the dispute, the arbitral tribunal shall terminate the proceedings that is occur . Then, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an award on the terms which is agreed upon. Second:  An award in accordance with the agreed terms shall be made in accordance with the provisions of section 33 and shall state that it is an award. Third:  An award made under subsection (1) shall have an award in accordance with the merits of the case.  

Ways To Resolve Dispute Are: 

There are 2 ways to resolve disputes, either through the traditional method of court or through alternative methods of arbitration. You need to follow Arbitration Act of Malaysia 2005 (Act 646)  

The Importance of Using Arbitration in Construction Contracts

Arbitration Act of Malaysia 2005 (Act 646) After that, arbitration makes us able to select members of the arbitral tribunal to hear a particular case depending on the specifications of the case.    Then, arbitral also makes us able to select its own arbitrator according to expertise in the field involved in the dispute.   Parties have many alternatives to choose the method of procedure that will be applied to the dispute. Dispute resolution, which is usually faster and cheaper (Faster hearing and less paperwork means lower costs borne by the parties). It is private – there is no public record of any proceedings, though not necessarily confidential. The parties can agree that the information disclosed during the negotiations cannot be used later.  

Disadvantages of Using Arbitration in Construction Contracts

  The parties must bear the costs of the arbitrator and their respective venues. Sometimes arbitration just mimics the court process and so you don’t get an informal edge and speed. Arbitration Act of Malaysia 2005 (Act 646) Limited powers of coercion or sanctions if one party fails to comply with the arbitrator’s instructions, which can slow down the process.   
  • The right of limited appeal/ decision of the arbitrator is final.
  • Arbitration Award
  • Documents that give and explain the arbitrator’s decision.
  • It is in writing signed by them. (m/s 27,33.1)
  • Clause 66.8- 203A/2010 (pwd) & clause 34.11 (pump) “award” are binding on both parties.
  • An arbitrator has the power to issue interim, partial and final awards.
  • After the award is made, a copy of the award, signed by the arbitrator, must be sent to each party.
  • Correction and interpretation of additional award / award (m / s 29, 35)
  • Within 30 days from the date the award is issued.
  • Award is final and binding (m/s 30.36)
  • An arbitrator may not vary, amend, correct, review, add to or revoke an award already made except as specifically provided in section 35.

Effect of Arbitration on Contracts

  In the event of bankruptcy, the trial must proceed either to resolve the bankruptcy issue or replace it with someone else. (M/ s 40/ 49.1). Clause 66.6 (pwd)-If any arbitration proceedings are conducted pursuant to clause 66.3, the parties may make any counterclaim in relation to any dispute or difference arising out of the contract   Any decision of the PP in writing and will be binding on the parties to the contract until the completion of the work.  

Rachel Dunn

Lajur Pejalan