// Which arbitration rules should I choose?

#1 International Institutional Rules vs. Ad Hoc

The benefit of institutional rules is that they have been tried, tested and interpreted around the world - so there is less uncertainty about their application. Parties may prefer to tailor their dispute resolution process to the specifics of their particular dispute by, for example, drafting a bespoke process involving a combination of mediation and arbitration, fewer rounds of submissions, a shorter timetable and incorporating the use of a single joint expert. Whilst ad hoc bespoke rules enable parties more flexibility, there are risks associated with how the parties and Tribunal's will interpret and apply bespoke rules. Any uncertainty is likely to give rise to increased cost and being kept out of sums owed longer.

#2 Project or Enforcement Location

Some parties prefer to choose a set of institutional rules which are linked to the location of their dispute and/or location in which they are likely to enforce any Award. In the GCC, for example, Dubai International Arbitration Centre (DIAC), Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), Cairo Regional Centre for International Commercial Arbitration (CRCICA) and Saudi Center for Commercial Arbitration (SCCA) are popular choices for those doing business and/or looking to enforce in the GCC. The advantage of this approach is that the courts in the seat of the arbitration are likely to be familiar with applications made in support of arbitrations under local institutional rules.

#3 Agreeing your procedural rules early

If possible, the best thing parties can do is to agree which procedural rules will apply to their dispute in their Arbitration Clause when the main contract is entered into, long before a dispute takes place. By the time you are in dispute territory, the ability to cooperate with your counterparty - even on the most uncontroversial of things - is often lost. Save time and expense by avoiding a satellite dispute about the rules which apply to your dispute now, before a dispute is on the horizon!

Selecting your arbitration rules shouldn't be an afterthought. Get them into your contract at the outset to avoid further disputes later. Whether you go for tried and tested institutional rules, or a bespoke ad hoc process, it is important that all parties understand which rules the dispute will be governed by, and how they will be applied.

Madelaine Power is a Barrister at Pinsent Masons in London, specialising in international construction, commercial and oil and gas arbitration, often with links to the GCC.