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
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
⚖️ Main Role of an Arbitrator
An arbitrator:
- Reviews evidence
- Hears arguments from both sides
- Interprets the contract/law
- Makes a binding or enforceable decision (award)
đ️ 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
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 |
What Arbitrators Commonly Decide
✔ Contract interpretation
Example:
What did the change-order clause
mean?
✔ Delay responsibility
Example:
Was delay caused by contractor or
owner?
✔ Standard of care
Example:
Did the engineer act reasonably?
✔ Compensation
Example:
Is contractor entitled to extra
payment?
⚠️ 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
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
đ¯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
One-Line Memory Trick
Judge = public court decision-maker
Arbitrator = private contract-based decision-maker
Quick
Comparison
|
Role |
Main
Function |
|
Arbitrator |
Resolves private disputes |
|
Judge |
Resolves court/legal disputes |
|
Mediator |
Helps parties negotiate |
|
Regulator |
Enforces professional standards |
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.
