The Construction Arbitration Centre (Asia Pacific) provides model dispute resolution clauses for incorporation into construction, infrastructure, and engineering contracts. These clauses designate CACAP as the appointing authority for the nomination of qualified dispute resolution practitioners, including arbitrators, mediators, expert determiners, dispute board members, and expert witnesses.
Parties are encouraged to adopt the clause most appropriate to their contractual arrangements and the nature of the anticipated dispute resolution requirements. The clauses may be adapted to suit the particular circumstances of the contract, although any modification should be undertaken with appropriate legal advice to ensure enforceability.
Binding
Clause A.1 — Arbitration (Future Disputes)
Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration. The appointing authority shall be the Construction Arbitration Centre (Asia Pacific) (CACAP).
The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators] appointed in accordance with the appointment procedures of CACAP.
The seat of the arbitration shall be [city, country].
The language of the arbitration shall be [language].
The law governing this contract shall be the substantive law of [jurisdiction].
Usage: For incorporation into future contracts where the parties wish to designate CACAP as the appointing authority for arbitrator appointments. Suitable for both domestic and international arbitration.
Binding
Clause A.2 — Arbitration (Existing Disputes — Submission Agreement)
A dispute having arisen between the parties concerning [brief description of dispute], the parties hereby agree that the dispute shall be referred to and finally resolved by arbitration. The appointing authority shall be the Construction Arbitration Centre (Asia Pacific) (CACAP).
The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators] appointed in accordance with the appointment procedures of CACAP.
The seat of the arbitration shall be [city, country].
The language of the arbitration shall be [language].
The law governing the substance of the dispute shall be the law of [jurisdiction].
Usage: For use where a dispute has already arisen and the parties wish to agree to arbitration with CACAP as the appointing authority, whether or not the underlying contract contains an arbitration clause.
Binding · Administered
Clause A.3 — Arbitration with CACAP Administration
Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration administered by the Construction Arbitration Centre (Asia Pacific) (CACAP).
The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators] appointed in accordance with the appointment procedures of CACAP. The Centre shall provide administrative support for the proceedings.
The seat of the arbitration shall be [city, country].
The language of the arbitration shall be [language].
The law governing this contract shall be the substantive law of [jurisdiction].
Usage: For parties who wish CACAP to serve not only as the appointing authority but also to provide ongoing administrative support for the proceedings. See
Administration Services for further information.
Binding · Expedited
Clause A.4 — Expedited Arbitration
Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration administered by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with the CACAP Expedited Arbitration Rules in force at the time of commencement of the arbitration. The dispute shall be resolved by a sole arbitrator.
The seat of the arbitration shall be [city, country].
The language of the arbitration shall be [language].
The law governing this contract shall be the substantive law of [jurisdiction].
Usage: For parties who wish to opt in to the CACAP Expedited Arbitration Rules, which provide for an accelerated timetable with a sole arbitrator. Best suited to lower-value or less complex disputes where speed and cost efficiency are priorities.
Binding · Threshold
Clause A.5 — Arbitration with Expedited Threshold
Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration administered by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with the CACAP Arbitration Rules. Where the amount in dispute does not exceed USD [500,000 / 1,000,000], the CACAP Expedited Arbitration Rules shall apply.
The seat of the arbitration shall be [city, country].
The language of the arbitration shall be [language].
The law governing this contract shall be the substantive law of [jurisdiction].
Usage: For parties who wish to default to the full Arbitration Rules but provide for expedited procedure as a fallback where the amount in dispute is below the specified threshold. The threshold may be adjusted to suit the value and nature of the contract.
Binding
Clause C.1 — Binding Expert Determination
Any dispute arising out of or in connection with [this contract / clauses [ ] of this contract] concerning [technical matters / valuation / quantum / delay / defects / specify] shall be referred to and finally determined by an independent expert appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The determination of the expert shall be final and binding upon the parties, save in the case of manifest error, fraud, or failure to act impartially.
The expert shall act as an expert and not as an arbitrator. The costs of the expert determination shall be borne as the expert may direct.
Usage: For disputes of a technical or valuation nature where the parties wish the expert’s determination to be final and binding. Commonly used for quantum, delay, defects, and valuation disputes in construction contracts.
Non-Binding · Advisory
Clause C.2 — Non-Binding Expert Determination
Any dispute arising out of or in connection with [this contract / clauses [ ] of this contract] concerning [technical matters / valuation / quantum / delay / defects / specify] may be referred by either party to an independent expert appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The findings of the expert shall be advisory and non-binding upon the parties, unless the parties expressly agree in writing to be bound by such findings.
The expert shall act as an expert and not as an arbitrator. The costs of the expert determination shall be borne equally by the parties unless otherwise agreed.
Usage: For disputes where the parties wish to obtain an independent expert opinion to facilitate settlement, without being bound by the outcome. Useful where the parties wish to preserve the right to pursue arbitration or litigation if the expert’s findings are not accepted.
Tiered · Expert then Arbitration
Clause C.3 — Expert Determination Followed by Arbitration
Any dispute arising out of or in connection with [this contract / clauses [ ] of this contract] concerning [technical matters / valuation / quantum / delay / defects / specify] shall in the first instance be referred to an independent expert appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The expert shall issue a determination within [28 / 42 / 60] days of appointment, or such further period as the parties may agree.
If either party is dissatisfied with the expert’s determination, that party may, within [28] days of receiving the determination, refer the dispute to arbitration. The appointing authority for the arbitration shall be CACAP. The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators].
The seat of the arbitration shall be [city, country]. The language of the arbitration shall be [language]. The law governing this contract shall be the substantive law of [jurisdiction].
If neither party refers the dispute to arbitration within the specified period, the expert’s determination shall become final and binding upon the parties.
Usage: Two-tier clause providing for expert determination as a mandatory first step, with the right to escalate to binding arbitration if dissatisfied. The expert’s determination becomes final and binding if not challenged within the specified period. Well suited to construction contracts with both technical and legal dimensions.
Binding · DAB
Clause D.1 — Dispute Adjudication Board
The parties shall establish a Dispute Adjudication Board (DAB) comprising [one / three] suitably qualified and experienced member(s). Where the parties are unable to agree on the appointment of [the / any] member of the DAB, such member shall be appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The DAB shall be established within [28] days of the commencement date of the contract. The DAB shall visit the site at intervals of not more than [70 / 140] days.
Either party may refer a dispute to the DAB. The DAB shall give its decision within [84] days of receiving the referral. The decision of the DAB shall be binding on both parties, who shall promptly give effect to it, unless and until revised by an amicable settlement or an arbitral award.
Usage: For major construction and infrastructure projects requiring a standing panel to issue binding decisions during the course of the works. Consistent with FIDIC Sub-Clause 21.4 principles. The DAB’s decisions are immediately binding, subject to the right to refer the dispute to arbitration.
Non-Binding · DRB
Clause D.2 — Dispute Review Board
The parties shall establish a Dispute Review Board (DRB) comprising [one / three] suitably qualified and experienced member(s). Where the parties are unable to agree on the appointment of [the / any] member of the DRB, such member shall be appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The DRB shall be established within [28] days of the commencement date of the contract. The DRB shall visit the site at intervals of not more than [70 / 140] days.
Either party may refer a dispute to the DRB. The DRB shall provide its recommendation within [84] days of receiving the referral. The recommendations of the DRB shall not be binding upon the parties but shall be admissible in evidence in any subsequent arbitration or proceedings.
Usage: For projects where the parties prefer non-binding recommendations to facilitate dispute resolution during the course of the works. The DRB’s recommendations carry persuasive authority but do not bind the parties.
Combined · CDB
Clause D.3 — Combined Dispute Board
The parties shall establish a Combined Dispute Board (CDB) comprising [one / three] suitably qualified and experienced member(s). Where the parties are unable to agree on the appointment of [the / any] member of the CDB, such member shall be appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
The CDB shall be established within [28] days of the commencement date of the contract. The CDB shall visit the site at intervals of not more than [70 / 140] days.
Unless the referring party requests a formal decision, the CDB shall issue a recommendation. Where a formal decision is requested, the CDB’s decision shall be binding on both parties, who shall promptly give effect to it, unless and until revised by an amicable settlement or an arbitral award.
Usage: For projects requiring the flexibility of both binding decisions and non-binding recommendations. The referring party elects whether to seek a binding decision or a recommendation. Consistent with FIDIC 2017 principles.
Tiered · DB then Arbitration
Clause D.4 — Dispute Board Followed by Arbitration
[Insert Clause D.1, D.2, or D.3 above]
If either party is dissatisfied with the [decision / recommendation] of the [DAB / DRB / CDB], that party shall give notice of dissatisfaction within [28] days of receiving the [decision / recommendation].
If a notice of dissatisfaction has been given, and the dispute has not been settled amicably within [56] days after the date of the notice, the dispute shall be finally settled by arbitration. The appointing authority shall be the Construction Arbitration Centre (Asia Pacific) (CACAP). The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators].
The seat of the arbitration shall be [city, country]. The language of the arbitration shall be [language]. The law governing this contract shall be the substantive law of [jurisdiction].
Usage: For projects where the parties wish to provide for arbitration as the final tier of dispute resolution following a Dispute Board process. This is the standard multi-tier structure adopted in FIDIC and other international construction contract forms.
Recommended
Clause E.1 — Negotiation, Mediation, then Arbitration
In the event of any dispute arising out of or in connection with this contract, the parties shall first seek to resolve the dispute by direct negotiation between senior representatives of the parties with authority to settle the dispute.
If the dispute has not been resolved by negotiation within [14 / 21] days of a written request to negotiate, the dispute shall be referred to mediation. The mediator shall be appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
If the dispute has not been settled by mediation within [28 / 42 / 60] days of the appointment of the mediator, or such further period as the parties may agree in writing, the dispute shall be referred to and finally resolved by arbitration. The appointing authority shall be CACAP. The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators].
The seat of the arbitration shall be [city, country]. The language of the arbitration shall be [language]. The law governing this contract shall be the substantive law of [jurisdiction].
Usage: The most commonly recommended multi-tier clause for construction and infrastructure contracts. Provides three stages of escalation: negotiation, mediation, then binding arbitration. Ensures that parties attempt amicable resolution before incurring the cost of formal proceedings.
Tiered
Clause E.2 — Negotiation, Expert Determination, then Arbitration
In the event of any dispute arising out of or in connection with this contract, the parties shall first seek to resolve the dispute by direct negotiation between senior representatives of the parties with authority to settle the dispute.
If the dispute has not been resolved by negotiation within [14 / 21] days of a written request to negotiate, the dispute shall be referred to an independent expert appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures. The expert shall issue a determination within [28 / 42 / 60] days of appointment.
If either party is dissatisfied with the expert’s determination, that party may, within [28] days of receiving the determination, refer the dispute to arbitration. The appointing authority shall be CACAP. The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators].
The seat of the arbitration shall be [city, country]. The language of the arbitration shall be [language]. The law governing this contract shall be the substantive law of [jurisdiction].
If neither party refers the dispute to arbitration within the specified period, the expert’s determination shall become final and binding.
Usage: A three-tier clause suited to contracts with a predominantly technical subject matter where the parties prefer expert determination as an intermediate step before arbitration.
Tiered · Full Escalation
Clause E.3 — Negotiation, Mediation, Expert Determination, then Arbitration
In the event of any dispute arising out of or in connection with this contract, the parties shall first seek to resolve the dispute by direct negotiation between senior representatives of the parties with authority to settle the dispute.
If the dispute has not been resolved by negotiation within [14 / 21] days of a written request to negotiate, the dispute shall be referred to mediation. The mediator shall be appointed by the Construction Arbitration Centre (Asia Pacific) (CACAP) in accordance with its appointment procedures.
If the dispute has not been settled by mediation within [28 / 42] days of the appointment of the mediator, or such further period as the parties may agree in writing, the dispute shall be referred to an independent expert appointed by CACAP. The expert shall issue a determination within [28 / 42] days of appointment.
If either party is dissatisfied with the expert’s determination, that party may, within [28] days of receiving the determination, refer the dispute to arbitration. The appointing authority shall be CACAP. The arbitration shall be conducted by [a sole arbitrator / a tribunal of three arbitrators].
The seat of the arbitration shall be [city, country]. The language of the arbitration shall be [language]. The law governing this contract shall be the substantive law of [jurisdiction].
If neither party refers the dispute to arbitration within the specified period, the expert’s determination shall become final and binding.
Usage: A comprehensive four-tier escalation clause for major projects where the parties wish to exhaust all amicable and intermediate resolution mechanisms before proceeding to arbitration. Best suited to high-value, complex construction and infrastructure contracts.
Nomination
Clause F.1 — Expert Witness Nomination
Where a party requires the services of an expert witness in connection with proceedings relating to this contract, that party may request the Construction Arbitration Centre (Asia Pacific) (CACAP) to nominate a suitably qualified and experienced expert witness in accordance with its appointment procedures. The nominated expert witness shall be engaged directly by the requesting party on terms to be agreed between them.
Usage: For incorporation into contracts where parties wish to establish an agreed mechanism for the nomination of expert witnesses. The nominated expert is engaged directly by the requesting party; CACAP’s role is limited to the nomination itself. This clause may be used in conjunction with any of the arbitration, expert determination, or dispute board clauses above.
Guidance Notes
Seat of Arbitration
The seat (or juridical seat) determines the procedural law governing the arbitration, the supervisory court with jurisdiction over challenges to the award, and the framework for enforcement. The seat need not be the location where hearings are physically conducted. Parties should select a seat in a jurisdiction that has adopted the UNCITRAL Model Law on International Commercial Arbitration and is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Common seats in the Asia Pacific region include Singapore, Hong Kong, Kuala Lumpur, Bangkok, Sydney, and Melbourne. Where the parties do not specify a seat, CACAP or the tribunal may determine the seat having regard to the circumstances, the location of the parties, the governing law, and enforceability considerations.
Venue for Hearings
The physical location of hearings and procedural meetings may differ from the juridical seat of the arbitration. Hearings may be conducted at any location convenient to the parties, including by remote means (video conference). The choice of hearing venue does not affect the juridical seat or the applicable procedural law.
Number of Arbitrators
A sole arbitrator is generally appropriate for lower-value disputes or disputes of limited complexity. A tribunal of three arbitrators is appropriate for higher-value or more complex disputes. Where the parties do not specify the number, CACAP will determine the appropriate number having regard to the nature, complexity, and value of the dispute.
Language of Proceedings
Parties should specify the language in which the arbitration, mediation, or expert determination is to be conducted. Where the parties do not specify a language, the tribunal or appointed neutral will determine the language having regard to the language of the contract and the circumstances of the dispute.
Governing Law
The governing law (or substantive law) is the law that applies to the substance of the dispute and the interpretation of the contract. It is distinct from the procedural law of the arbitration (which is determined by the seat). Parties should take legal advice on the appropriate choice of governing law.
Confidentiality
Parties who wish to include an express confidentiality provision may add the following to any of the above clauses: “The parties agree that all aspects of the [arbitration / mediation / expert determination], including the existence of the proceedings, all documents and materials produced or exchanged, and any award or determination, shall be kept strictly confidential.”
Adaptation
The clauses set out above are intended as models and may be adapted to suit the particular circumstances of the contract. The Centre’s Secretariat welcomes enquiries regarding the drafting and adaptation of dispute resolution clauses. Any adaptation should be undertaken with appropriate legal advice to ensure enforceability. Enquiries may be directed to the Secretariat via the enquiry form.
Model Clauses in the CACAP Rules: The CACAP Arbitration Rules (Article 49), Expedited Arbitration Rules (Article 13), Mediation Rules (Article 29), Expert Determination Rules (Rule 40), and Dispute Board Rules (Article 50) each contain model clauses specific to proceedings administered under those Rules. The clauses on this page are provided as a comprehensive reference for parties drafting dispute resolution provisions and may be used in conjunction with, or as an alternative to, the model clauses contained in the individual Rules. Copies of the Rules are available on the Rules & Publications page.