Multi‐tiered dispute resolution clauses in engineering contracts: A Jordanian legal perspective

Abstract

AbstractThis study delves into the intricacies of the multi‐tier dispute resolution clause in engineering contracts, particularly within the Jordanian legal system. The multi‐tier dispute resolution clause has evolved from a traditional arbitration clause into a more comprehensive approach, reflecting the complexities of modern contractual relationships. The study employs a doctrinal or library‐based methodology involving a comprehensive review of relevant legal texts, statutes, regulations, and case law. The multi‐tier dispute resolution clause is defined as a contractual clause that stipulates the existence of different stages, each involving separate procedures, to address disputes and seek to resolve them. The study also examines the mandatory nature of the multi‐tier dispute resolution clause and the procedural defense based on an arbitration clause. The study concludes that following the sequence outlined, the multi‐tier dispute resolution clause should be binding. This necessitates the Jordanian legislator's intervention to establish a legislative framework that empowers decisions made by the Dispute Adjudication Board (DAB) or Dispute Avoidance/Adjudication Board (DAAB) to achieve the goals of multi‐tiered dispute resolution clause. It also calls for an amendment to Article (109) of the Civil Procedure Law, allowing procedural defense based on the Multi‐Tiered Dispute Resolution Clause, not limiting it to the arbitration clause, even if arbitration is not one of its tiers. This power should also extend to amicable settlements to ensure the proper implementation of the steps under the multi‐tiered dispute resolution clause.