REALWorld Law



Is it common for construction disputes to be referred to arbitration? If so, how does arbitration compare with litigation through the national/federal courts?



Construction disputes are predominantly brought before the courts. Although some qualities such as speed, confidentiality, expertise and flexibility are often highlighted as advantages of arbitration in construction disputes, in practice, these advantages are often not seen as deciding factors in favour of arbitration due to the cost of the arbitration process in France. Furthermore, French construction contracts commonly contain a jurisdiction clause naming the competent (French) court. Arbitration clauses are more often used in construction contracts where the contracting parties reside in different countries.