Arbitration has thus emerged as a preferred method for resolving construction disputes due to its flexibility, confidentiality, and relative speed. This article delves into the legal framework governing arbitration in India, the common causes of construction disputes, and how arbitration serves as an effective dispute resolution mechanism in this sector.

This Act is modeled after the United Nations Commission on International Trade Law (UNCITRAL) Model Law and has undergone several amendments, the most recent being in 2021, to streamline the process and make it more efficient. The Act provides the foundation for the arbitration process in India, both domestic and international.

Arbitration, especially in comparison to traditional litigation, is a faster process. Court cases in India can drag on for years, if not decades, due to the overburdened legal system. The Arbitration Act provides for time-bound proceedings. The 2015 amendment to the Act introduced a timeline of 12 months for the completion of arbitration proceedings, which can be extended by a further six months with the consent of the parties

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