The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunmedia.net

Bahamian contractors have called for more attorneys to specialise in construction arbitration, suggesting that provisions for such forms of dispute resolution be made mandatory in their contracts.

Larry Treco, president of CGT Construction, addressing a recent Caribbean Institute of Arbitrators (CIArb) seminar, said: “Presently there are not many lawyers or law firms that have the knowledge of construction arbitration, and this in itself drives the cost of arbitration as the contractor has to engage a foreign consultant to aid in their case.”

He added: “Making arbitration mandatory in construction contracts in the Bahamas would force more local firms to hire arbitration specialists or have their own lawyer who specialises in arbitration, and this would reduce the arbitration cost to local contractors and others who go that route.”

Mr Treco said that when negotiations between developer and contractor fail, the parties can often chose mediation or arbitration depending on what is allowed in the contract.

“From a cost point of view mediation is the next best option. It’s cheaper than an arbitration in that it does not incur the high legal fees,” he said. “The distinct benefit of arbitration is that the outcome is enforceable, and if you win you will get paid.

“I would never sign a contract in the Bahamas without the arbitration being here in the Bahamas under Bahamian law. That’s really the only protection you have. If not, a lot of foreign investors come in and they want arbitration in New York. If you’re building is here in the Bahamas, why would I want to incur the cost of hiring lawyers in New York and other travel expenses; it’s ridiculous.”

Peter Whitehead, president of Osprey Construction, said it was important that arbitrators handling construction disputes have knowledge of the construction sector.

“There is the legal side and then there is the construction knowledge side,” he added.