Navigating Disputes and Arbitration Mechanisms in Construction: Insights from Power & Energy Infrastructure Project Management

Abstract

In construction project delivery, conflicts are an ongoing issue, especially in power and energy infrastructure construction, where technical complexity, multi-stakeholder relationships, and ambiguities of the contracts often coincide. In the paper, the manager, the cause of construction disputes, and their nature are analyzed, discussing arbitration as the method of choice to solve conflicts in power and energy infrastructure projects. With current case studies used as reference, the paper is going to examine the efficiency of arbitration systems used, the importance of international and regional arbitral institutions, and the practical issues surrounding the costs and enforcing arbitral awards. It also examines the new trending phenomenon, including online arbitration markets and other developments with the incorporation of expert determination, as dispute avoidance and resolution tools. Policy and practice recommendations are found at the end of the paper to ensure readiness in dispute resolution, mitigation of project delivery risks, and better governance of large-scale energy projects in developed and emerging economies.