Arbitration is a form of Alternative Dispute Resolution (ADR). Arbitration has the advantages of confidentiality, expedited processes and an expert tribunal. Arbitration is usually less costly and quicker than litigation and the decision is generally binding.
Commercial Arbitration is governed by the Commercial Arbitration Act with versions varying from state to state, while International Arbitration is governed by the International Arbitration Act 1974 (Cth).
Arbitration is one of the most common methods of resolving disputes in many industries, with arbitration clauses frequently included in construction, major works, employment and many other industry contracts. Parties can also enter into an arbitration agreement after a dispute has arisen.
An arbitrator, who is a neutral third party is appointed often for their particular expertise in the relevant industry or the subject matter of the dispute. The arbitrator will make a decision following the hearing and will issue the arbitration award.