Arbitration can last as long as nine years and costs an average of £54,000, a new report has found

The study, carried out by an MSc student, underlines problems associated with using this form of dispute resolution. Although the nine-year long case was extreme, the second longest duration was just over four years. The average case lasted 14 months, the report found.

Experts said such results showed why the use of arbitration was on the wane compared to adjudication. David Blake, founder of QS and dispute resolution firm Blake Newport, said the findings on the length of cases were not a good advert for arbitration. "It's a major downside - a dispute over the £500,000 mark according to the analysis on average lasts 27 months. By that stage everyone has given up the will to live."

The study was carried out by Eugene Lenehan, consultant, Alway Associates, as part of his MSc course in construction law. He collected statistics from 100 cases carried out in the last decade and received feedback from 36 arbitrators.

After 27 months, everyone has given up the will to live

David Blake, Blake Newport

Lenehan's analysis did show a reasonable chance of success for claimants in arbitration cases. Almost two thirds of claimants (60%) won, although there was less chance of winning if the claimant was a contractor (54%), as opposed to a sub-contractor (71%). The average amount awarded for all the cases was just below 55%.

The most common cause of arbitrations was variations, making up 54% of the cases with extensions of time coming second.

Source

QS News