11 - Disputes
11.1 If a dispute arises out of or in connection with the application of these Rules or the performance, validity or enforceability of them (a “Dispute”), then all parties concerned with the Dispute shall follow the procedure set out in this Rule 11.
11.2 Any party shall give to all others written notice of the Dispute, setting out its nature and full particulars (a “Dispute Notice”), together with relevant supporting documents. The parties will attempt, in good faith, to resolve the Dispute promptly through negotiation in person or between representatives of the parties who have authority to settle.
11.3 If those negotiations are, for any reason, unable to resolve the Dispute within 21 days, the dispute shall be referred to mediation in accordance with the London Chamber of Arbitration and Mediation (“LCAM”) Model Mediation Procedures. Unless otherwise agreed between the parties, the mediation will start not later than 35 days after the date of the Dispute Notice.
11.4 If the dispute is not resolved within 42 days of the Dispute Notice, the Dispute shall be finally resolved by arbitration in accordance with the LCAM Expedited Arbitration Rules. The arbitral tribunal shall be composed of one arbitrator. The language of any arbitration or mediation shall be English. The seat of any arbitration shall be London.
11.5 The law of this arbitration agreement shall be the law of England and Wales.
11.6 If at any time we are uncertain as to our duties, obligations or responsibilities under these Rules or we receive instructions, claims or demands from either party to the Contract which in our opinion conflict with each other or any of these Rules:
11.6.1 We will issue a notice to both parties to the relevant Contract setting out:
(a) Our interpretation of the Rules as they apply to the uncertain matter, together with our intended course of action; and
(b) A time limit for the parties to dispute this intended course of action (this time limit will not be less than five Business Days).
11.6.2 If a party wishes to dispute our intended course of action as set out in the notice under Rule 11.6.1, they must issue a Dispute Notice before the end of the time limit set out in the notice.
11.6.3 If one or more parties issues a Dispute Notice, the parties will follow the procedure in Rules 11.2 to 11.4 to determine between themselves how we should proceed.
11.6.4 If the dispute resolution procedure is commenced, we will be entitled to hold any Retention and to refrain from taking any action until we receive:
(a) A joint instruction from both parties to the Construction Contract in terms satisfactory to us; or
(b) An arbitrator’s order that is binding on us,
following which we will deal with the Retention in accordance with such instruction or order.
11.6.5 If neither party issues a Dispute Notice before the end of the time limit set out in our notice under Rule 11.6.1, our interpretation of the Rules and proposed course of action will become binding on both parties, and each agrees that they will have no further ability to challenge it.