The

Arbitration
Process

PROCEDURES
1.DefineClaimorCauseofAction
2.FileClaim(RequestforAdjudication)withCIAC
3.NoticetoRespondent
4.AnswerandCounter-claim
5.Reply
6.AppointmentofArbitrator/Tribunal
7.TermsofReference
8.Hearings
9.Award
10.Execution

DefineClaims/CausesofAction
q CheckifArbitrationClauseProvidedforin
Contract
EffectoftheArbitrationClause:
-SubmissiontoCIACJurisdiction;or
-FailureorRefusaltoArbitrate

q Ifnone,AgreementtoArbitrateFormshould
beexecutedbytheparties

MODELARBITRATIONCLAUSE
Anydisputearisingoutoforinconnectionwith
this contract, including any question regarding
its existence, validity or termination shall be
referred to and finally resolved by arbitration
under the Rules of Procedure Governing
Construction Arbitration promulgated pursuant
to Executive Order 1008 (the Construction
Industry Arbitration Law) by(indicate number:
one or three arbitrator/s) to be appointed in
accordancewithsuchRules.

DefineClaims/CausesofAction
qWhenarbitrationcannotproceed
No arbitration clauseoragreement to arbitrate
(forprivatecontractsonly)

FilingofClaimswithCIAC
qRequestforAdjudication
qModeofSettlement
qChoiceofArbitrators
qSuminDispute
qDocumentsRequired
qArbitrationFees
qScheduleofPaymentofFees

qRequestforAdjudication
-SubmissiontoArbitration
-ContentsofRequest/Complaint


qRequestforAdjudication

-SubmissiontoArbitration
-InCaseofGovernmentContracts

exhaustedalladministrative
remedies

unreasonabledelayonthepartof
thegovernmentagency

exhaustionofadministrative
remediesnotpracticable

RequestforAdjudication
ContentsofRequest

NameinFull,DescriptionandAddresses
oftheParties

StatementoftheClaimantsCase

RelevantAgreementsorContract

DocumentationsandInformationto
establishcircumstancesoftheCase


qModeofSettlement
Arbitration
Mediation


qChoice/SelectionofArbitratiors
NumberofArbitrators

SoleArbitrator

ArbitralTribunal

qDisqualificationorNon-AcceptancebyNominees
CIACtoChoose

QualificationofCIACArbitrators
q MenofDistinction

q TechnicallyQualified
q TrainedandAccreditedbyCIAC
q PICAMember
q ProfessionalswithExperiencein
Construction Disputes and nuances
thereof

SelectionofArbitrators
n Choice/SelectionofArbitrators
-availability,caseload,natureofcase
Challenge:
Partiality,bias,incompetence,or
professionalmisconduct
CIACtorulewithin15days
Whenarbitratorpreviouslyactedas
conciliator/mediatorofthesamedispute

Claims/CausesofAction
n SuminDispute

-ClaimofClaimant
-Counter-claimofRespondent
-OtherCosts

Claims/CausesofAction
n

ClaimforSumofMoney
0

Non-paymentofClaims/Billings

UnreasonableimpositionofLD

0 Change-ordersandExtraWork
0 Liquidateddamages
n

Non-monetaryclaims
0 Illegaltake-overofWorks
0 InterpretationofContractDocuments

CIACTABLEofADMINISTRATIVE
CHARGESandARBITRATORSFEES
+FOR MONETARY CLAIMS
I. SCHEDULE OF FILING AND ADMINISTRATIVE FEES
SUM IN DISPUTE
FILING FEE
ADMINISTRATIVE FEE
LessthanP100,000.00
P3,600.00
P6,000.00
P100,000.00toP1M
P3,600.00+0.36%of P6,000.00+0.24%of
excessover100,000
excessover100,000
P1.0MtoP10.0M
P6,840.00+0.12%of P 8,160.00 +
0.12%of
excessoverP1.0M
excessoverP1.0M
P10.0MtoP50.0M
P17,640.00+0.06%of P 18,960.00 + 0.06%
of
excessoverP10.0M excessoverP10.0M
MorethanP50.0M
P41,640.00+0.03%of P 42,960.00 +
0.03%of

CIACTABLEofADMINISTRATIVE
CHARGESandARBITRATORSFEES
II. ARBITRATORS FEES
ThehonorariaoftheArbitratorsshallconsistofaBaseAmountplusAdjustmentstoreflect
complexityofthecase,numberofdisputantsandnumberofarbitrators.
1.BASE AMOUNT

P1M
over
1M
- 5.0 M
over
5M
- 10.0 M
over
10M - 20.0 M
over
20M - 50.0 M
over
50M - 100.0 M
over 100M - 500.0M
over 500M - 1Billion
Above 1 Billion

2% of the Sum in Dispute

P20,000.00 + 1.00% in excess of 1.0 M
60,000.00 + 0.75% in excess of 5.0 M
97,500.00 + 0.50% in excess of 10.0 M
147,500.00 + 0.20% in excess of 20.0 M
207,500.00 + 0.10% in excess of 50.0 M
257,500.00 + 0.05% in excess of 100.0 M
457,500.00 + 0.035% in excess of 500.0 M
632,500.00 + 0.025% in excess of 1 Billion

As amended by CIAC Resolution No. 05-2009 (Approving Additional Ranges and Base
Amounts for Arbitrators Fees); Effective 04 July 2009
______________________________________________________________________________

CIACTABLEofADMINISTRATIVE

CHARGESandARBITRATORSFEES
III. SCHEDULE OF PAYMENTS
A. Upon filing of the Request for Adjudication (RFA)

100%FilingFee

50% AdminstrativeFee
InitialDepositforArbitratorsFees

50% of arbitrators fees based on

amountof
claim

Respondent to deposit similar amount

basedon
hiscounterclaim,ifany

CIACTABLEofADMINISTRATIVE

CHARGESandARBITRATORSFEES
B.Upon signing of the Terms of Reference (TOR):
BalanceoftheFilingFee
50%oftheAdministrativeFee
50%oftheArbitratorsFee
C.At the Penultimate Hearing / Meeting:
50%oftheAdministrativeFee
50%oftheArbitratorsFee
*Ifnohearingisheld,thelasttwotranches(B&C)shall
bedueupon
TORsigning


PRELIMINARYCONFERENCE

- Matters to be discussed

nPossibilityofAmicableSettlement
nNecessityofAmendmentstoPleading
nStipulationsandadmissionsoffacts
nLimitationsonthenumberofWitnesses
nSimplificationofIssues
nOtherMatters

TermsofReference
nContents
nSigningoftheTermsofReference
nArbitrationtoProceedevenwithoutthe
TermsofReference

ContentsoftheTermsofReference
n Full names of Parties and their Personal
Circumstances
n AddressesforNotification/Communication
nSummaryofRespectiveClaims
nDefinitionofIssues
nPositionofDisputantsperIssue
n Arbitrators
nScheduleofPaymentofFees

TERMSOFREFERENCE(TOR)
a) full name of the parties and their personal circumstances
b) address of the parties to which notifications or
communications arising in the course of the arbitration may
validly be made
c) summary of the parties respective claims
d) definition of the issues to be determined
e) arbitrator(s) full names and addresses
f) place of arbitration
g) breakdown, schedule of payment and sharing of arbitration
fees
h) such other particulars as may be required to make the
arbitral award enforceable in law, or may be regarded as
helpful by the CIAC or the arbitrator(s)

TERMSOFREFERENCE(TOR)

ArbitrationtoProceedwithoutTermsofReference

Ifoneofthepartiesrefusedtosign

The Parties agreed that the issues and matters

raisedintheirpleadingsaredeemedsubmitted
forresolutionwithoutfurtherevidence.

TERMSOFREFERENCE(TOR)
SigningoftheTermsofReference

-15daysafterpreliminaryconference
- 3 days after signing transmitted to CIAC
Secretariat

Whattobereadywith
WellPrepared
CompleteandProperDocumentations

TechnicallyCorrect

LogicallyPresented

CredibleWitnesses

WhattoExpect
Integrity
Speed
Fairness
WritofExecution

ARBITRABLEISSUES
1. Violation of specifications for materials and
workmanship
2.Violationofthetermsofagreement
3. Interpretationand/orapplicationof
contractualprovisions
4. Amountofdamagesandpenalties
5. Commencementtimeanddelays
6. Maintenanceanddefects
7. Paymentdefaultofemployerorcontractor
8. Changesincontractcost

ACCREDITATIONOF

CONSTRUCTIONARBITRATOR
1.

MINIMUMREQUIREMENTS:

1.1 Atleast40yearsofageatthetimeofapplication;
1.2 HolderofaBachelorsdegreeinEngineering,
Architecture,LaworAccountancy;
1.3 Licensedtopracticehis/herprofession;

ACCREDITATIONOF
CONSTRUCTIONARBITRATOR
1.4

Atleastten(10)yearsinthepracticeofhis/her
professionandten(10)yearsofworkexperiencein
constructionmanagement-relatedactivitiesorin
handlingofcontractualdisputesand/orcontract
negotiations;

1.5Infullenjoymentofhis/hercivilrights,mustnothave
beenconvictedofacrimeinvolvingmoralturpitudeor
ofanyothercrimeforwhichthepenaltyimposed upon
him/herisoversix(6)monthsofimprisonment.

ACCREDITATIONOF
CONSTRUCTIONARBITRATOR
1.6
1.7

Willingtoundergoallscreeningrequirements
Willingtoundergotrainingtobeconductedbythe CIAC.

2.EXCEPTIONS:
2.1

Exceptionalprofessionalswhohavesubstantially
compliedwiththeminimumrequirements1.1to1.6,
andwhobyreasonoftrainingsorexperiencesin
construction,conductedlecturesonaccreditation
coursesuponinvitationbytheCIAC.