International arbitration is a method by which parties to a global construction project may resolve their disputes without resorting to the courts of a foreign country. It is generally the preferred method for resolving disputes. However, arbitration in another country can produce uncertain results and can impact a party's future business opportunities in the other country. There are both advantages and disadvantages to international arbitration.

International arbitration generally allows parties to a global construction dispute to have more control over the proceedings. The parties play a role in the selection of the arbitrators, which arbitrators may be experts in the construction industry. International arbitration provides a neutral and an impartial forum for resolving the dispute. Because it is frequently held outside the county of either party, it does not attract as much publicity as litigation.

International arbitration allows parties to a global construction dispute to attend proceedings that use a common language and more flexible rules of procedure. It allows some discovery and designates which country's laws will control the dispute.

International arbitration generally results in an award that is enforceable in many countries. The process is less adversarial and is more likely to preserve business relationships. The process is also confidential and is less costly than litigation.

There are some disadvantages to international arbitration. Unless a global construction contract provides for discovery, there is generally not much discovery in the arbitration process. Related cases can rarely be consolidated in international arbitration. Third parties, who are involved in a dispute but who are not parties to an arbitration agreement, cannot be joined in the arbitration.

International arbitration can be a lengthy process, particularly if a dispute involves complex issues. Although costs and expenses are generally lower than with litigation, the costs and expenses can be relatively high. Even if a party obtains a favorable decision, the decision may not be enforceable in the country in which the arbitration took place.

However, international arbitration is generally the preferred method for resolving a dispute regarding a global construction project. Litigation in a foreign country can be unpredictable and can impact a party's ability to continue to do business in that country. This is the reason that most global construction contracts now contain arbitration clauses.

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