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Settlement of Disputes
Settlement of Disputes  

with reference to the attached Clause from the Contract Agreement. My question is in view to phrasing the clause ; is proceeding to arbitration a contractual obligation that should be respected by both parties before proceeding to Chamber of Ombudsman (CoO) or it may be understood as optional step i.e. any party such as the Employer may refuse to go to arbitration and say to the Contractor (in case of unsettled dispute) go to CoO.

Thank you Sir

ANSWER: Dear Khaled,

Sorry for my first answer, which I need to correct: that article reads: "... unless otherwise a settlement is reached through arbitration and compliant to the Conditions of Contract".

Hence, you need to first attempt to resolve the any dispute, as provided for in the Contract. Only if you do not come to a final settlement after exhausting all means in the Contract, then and only then you go to the Ombudsman.

Hope that clarifies the matter and once again, apologise for my first hastily answer.

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1-first; I didn't receive any first answer , it was one answer I got.

2- SO Mr Florin; you see that it is compulsory for both parts to try the arbitration before they go to CoO. if the Employer says that No arbitration it will be breach to the contract. am I right? please confirm.

Thank you

Dear Khaled,

Thank you for coming back.

I sent a first answer, which I subsequently revised, probably before you reading it - good!

Indeed, that is a breach of Contract.

Moreover, I am not sure how the Ombudsman works in KSA, but normally, it would have no jurisdiction to resolve, if any dispute is referred to him, prior exhausting the disputes resolution means available in the Contract, arbitration included.

As a piece of advice, if you have adjudication in the Contract, I strongly suggest you use it, as it is consuming less time and money and is more effective.

Might be my subjective view, as FIDIC Accredited Adjudicator, but practice also demonstrated that arbitration confirmed most (95%) of the DAB decisions worldwide.

Good luck!

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Questions related to Civil Engineering Contracts, using FIDIC or other Conditions of Contract, concerning Procurement procedures and documents (pre-qualification, tendering and contracting) and Services/ Works Contracts implementation matters including Determinations, Payments, Time Extensions, VOs, Claims/Disputes. Additionally, questions related to dealing with International Financing Institutions. Can also answer questions in Romanian. Can not answer improperly formulated questions.


Over 20 years of experience in the field of design, works supervision, construction, management of aid funds and technical assistance for various types of contracts implementation, including severe conflictual contractual situations leading to Claims and disputes. Claims/ Contract management, Disputes adjudication, Arbitration.

Member of Romanian Professional Association of Roads and Bridges; Listed on President's List of Adjudicators of Romanian Association of Consulting Engineers Former member of the Disputes Resolution Board Foundation (DRBF) of United States – nominee on DRBF President’s Disputes Board Members List and of DRBF Chapter for Eastern Europe Former member of Polish Association of Consulting Engineers (SIDiR) – nominee on SIDiR President’s Disputes Board Members National List Member of “” volunteers pool Member of the "Constructions Disputes Resolution Services” International Panel of Construction ADR Specialists" of United States

- Graduate in 1994 the Construction Institute - Graduate of several FIDIC,Procurement and other courses - Graduate of first Disputes Board Members Mentoring Scheme ( - FIDIC Accredited Adjudicator

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