Expert Determination

Expert determination is a specialised dispute resolution process that holds significant importance in the construction industry, where complex technical and factual issues often arise during project execution. The significance of expert determination lies in its ability to provide a fair, efficient, and cost-effective mechanism for resolving disputes that require specialised expertise and knowledge.

In the construction context, expert determination typically involves the appointment of an independent third-party expert, who possesses relevant qualifications, experience, and domain knowledge to assess and make a binding determination on the specific issues in dispute. This expert could be an engineer, architect, quantity surveyor, or any other professional with specialised expertise relevant to the nature of the dispute.

One of the key advantages of expert determination is its ability to address highly technical or complex issues that may be challenging for traditional dispute resolution forums, such as courts or arbitral tribunals, to comprehend and adjudicate effectively. Construction projects often involve intricate engineering designs, complicated construction methodologies, and specialised materials or equipment, which require in-depth technical knowledge to evaluate properly.

Expert determination can also provide a more expeditious resolution of disputes compared to litigation or arbitration processes, which can be protracted and time-consuming. By leveraging the expert's specific knowledge and expertise, the determination process can be streamlined, reducing the need for extensive fact-finding or expert testimony, thereby minimising delays and associated costs.

Furthermore, expert determination offers a degree of flexibility and confidentiality that can be beneficial in the construction industry. Parties can agree on the specific procedures, timelines, and scope of the expert's mandate, tailoring the process to their unique circumstances and needs. Additionally, the expert determination process is typically confidential, protecting sensitive information and preserving the reputations of the parties involved.

Expert determination is particularly useful in resolving disputes related to issues such as contract interpretations, valuation of variations or claims, assessment of delay events, and technical compliance with specifications or industry standards. By relying on the expert's specialised knowledge and impartial analysis, the determination can provide a well-reasoned and authoritative resolution to complex disputes.

However, it is crucial to note that expert determination is typically binding on the parties, subject to limited grounds for challenge or appeal. Therefore, the selection of a qualified and experienced expert is critical to ensuring a fair and well-informed determination.

In summary, expert determination is a valuable dispute resolution mechanism in the construction industry, offering a specialised, efficient, and cost-effective way to resolve complex technical disputes. Its ability to leverage expert knowledge, provide expeditious resolutions, and maintain confidentiality makes it a significant tool for addressing the intricate challenges that often arise in construction projects.

We regularly publish insights about dispute resolution processes across different jurisdictions in the Asia-Pacific region.