Arbitrator

An arbitrator is a neutral independent decision-maker chosen to resolve a dispute outside of court through a process called arbitration.

In engineering, construction, and commercial disputes, arbitrators are commonly used to decide issues involving:

• construction delays
• payment disputes
• negligence claims
• contract interpretation
• professional responsibility

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 Simple Definition

An arbitrator functions like a private judge agreed upon by the parties in a contract.

Unlike a judge:

• arbitrators are usually selected by the parties
• proceedings are more private and flexible
• arbitration is based mainly on the contract

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⚖️ Main Role of an Arbitrator

An arbitrator:

1. Reviews evidence
2. Hears arguments from both sides
3. Interprets the contract/law
4. Makes a binding or enforceable decision (award)

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🏗️ Example (Engineering Context)

A contractor claims:

• delay caused by late drawings

The owner argues:

• contractor caused its own delays

The arbitrator examines:

• schedules
• emails
• site reports
• contract clauses

Then decides:

• who is responsible
• whether compensation or time extension is owed

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 Key Characteristics of Arbitration

Feature	Arbitration
Decision-maker	Arbitrator
Public or private	Usually private
Based on contract?	Usually yes
Formal court?	No
Binding decision?	Usually yes
Common in engineering?	Very common

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 What Arbitrators Commonly Decide

✔ Contract interpretation

Example:

What did the change-order clause mean?

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✔ Delay responsibility

Example:

Was delay caused by contractor or owner?

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✔ Standard of care

Example:

Did the engineer act reasonably?

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✔ Compensation

Example:

Is contractor entitled to extra payment?

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⚠️ What Arbitrators Usually CANNOT Do

Arbitrators generally cannot:

• imprison people
• impose criminal penalties
• revoke engineering licenses
• change government laws
• decide constitutional matters (usually)

Those powers belong to:

• courts
• regulators
• governments

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 How Arbitrators Think (VERY important for NPPE)

Arbitrators focus on:

• fairness
• evidence
• reasonableness
• contract wording
• professional conduct

They usually avoid:

• emotional reasoning
• extreme punishment
• assumptions without evidence

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🎯NPPE Exam Insight

In NPPE questions:

• arbitrators usually prefer:
• documented decisions
• proportional responses
• reasonable interpretation
• compliance with contract + ethics

The “best answer” often sounds:

• balanced
• practical
• defensible

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One-Line Memory Trick

Judge = public court decision-maker
Arbitrator = private contract-based decision-maker

 

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 Quick Comparison

Role	Main Function
Arbitrator	Resolves private disputes
Judge	Resolves court/legal disputes
Mediator	Helps parties negotiate
Regulator	Enforces professional standards

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 Final Takeaway

An arbitrator is an independent neutral person who resolves disputes—especially contractual and construction disputes—by reviewing evidence and issuing a binding decision outside of court.