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Engineering Arbitration


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About Engineering Arbitration​

 
 
 
 
 
 
 
 

About the Center:
The Board of Directors of Saudi Council of Engineers approved the establishment of the Arbitration Center in its meeting no. 31/3/13/3.

Vision:
Leadership in achieving justice in engineering disputes.

Message:
To settle engineering disputes, and dissemination of awareness on engineering arbitration.

Objectives:
      1. To settle the engineering disputes through arbitration or conciliation or any of other alternative methods.
       2. Enhance the integrity of the engineering arbitration procedures.
       3. Spreading the culture of engineering arbitration.
       4. Cooperation development and improvement between the Center and other arbitration entities.
       5. Building distinctive engineering competencies in the field of arbitration.
  
  
Beneficiaries of the Center:
     1. Ministries and government institutions.  
     2. Corporates, public and private institutions, and individuals.
      3. Judicial departments.  
      4. Engineers and workers in the field of engineering.
 
Services provided by the Center:

     1. Engineering arbitration 
     2. Reconciliation, pacification and other alternative methods to resolve disputes.
     3. Studies and technical consultancies for the judicial authorities.
     4. Training courses and conferences.
     5. Qualifying and accreditation of the arbitrators.
 
Sources of revenue:
Sources of the center’s revenue consist of:
     1. Government grants.
     2. Fees charged by the Center against providing services.
     3. Returns of the activities carried out such as training courses, conferences, publications, etc.
 
 

   
Saudi Council of Engineers
Saudi Center for Engineering Arbitration

Draft of Statute

Chapter I
Article (1)

Definitions
The following words and phrases shall have the meanings stated here, unless the context indicates otherwise:
 The Council: Saudi Council of Engineers.
 The Center: Saudi Center for Engineering Arbitration.
 Statute: Statute of Saudi Center for Engineering Arbitration.
 Alternative methods of dispute settlement: Methods for settlement of engineering disputes other than through the courts, which may include reconciliation, arbitration, or any other methods as determined by the rules and regulations of the Center.
 Board of Directors: The Board of Directors of Saudi Council of Engineers.
 Board of Center: Board of Directors of the Saudi Center for Engineering Arbitration.
 Director General: Director of the administrative body of the Center.
 The Arbitral Tribunal: The ad hoc body that is formed by the Center to look into a specific case.

Chapter II
Jurisdictions and headquarters of the Center

Article (2)
Establishment of the Center
A center with legal entity and financial independence named as Saudi Center for Engineering Arbitration will be instituted to resolve engineering disputes.

Article (3)
The objectives and jurisdictions of the Center
The objectives of the Center and its jurisdictions are as follows:
    1. To settle engineering disputes through arbitration or reconciliation or other alternative methods.
    2. To enhance the integrity of the engineering arbitration procedures.
    3. Spreading of the culture of engineering arbitration.
    4. Development and improvement of cooperation between the Center and other arbitration centers.
    5. Building distinctive engineering competencies in the field of arbitration.
 
Article (4)
Rules and Regulations
    1. The Board of the Center will define the arbitration rules in accordance with the Saudi arbitration system.
    2. The Center looks for other alternative methods of dispute settlement, as well as experience reports under regulations issued by the Board of Center.
    3. The Board of the Center issues regulations that govern the management of the Center, including the regulations for electronic communication mechanisms and registration fees for the cases or any other fees.
 
Article (5)
Headquarters of the Center
To be located in Riyadh city, and may establish branches in any other main cities in the Kingdom after the approval of the Board of the Center.
 
Chapter III
Administrative structure of the Center
Article (6)
The administrative structure of the center consists of:
            A - Center's Board of Directors.
           B - Director General.
           C - The Arbitral Tribunal.
           D - Secretariat of the Arbitral Tribunal.
 
Board of Directors
Article (7)
The Center’s Board of Directors consists of eight members, as follows:
1. Four members are selected by the Board of Directors of Saudi Council of Engineers, who are experienced and efficient, including the Secretary General of the SCE. 
2. Four members are elected from the engineers registered as members of the Center.

The Chairman of the Board and his deputy are elected from among them. The duration of the membership of the Board of the Center is three years, which is renewable for one more term, by the decision of the Board of Directors of Saudi Council of Engineers.
 
Article (8)
Meetings of the Board of Directors of the Center

The Board of Directors of the Center will meet on a regular basis, at least four times a year, and an extraordinary meeting may be convened at any time, at the request of the Chairman, or his deputy, or at least two-thirds of the members of the Board of Directors.
The Board of Directors’ Meeting will be convened by an invitation of the Chairman, or his deputy, in the absence of the first. No meeting will be convened except in the presence of two-thirds of its members, at least, including the Chairman or his deputy, and resolutions are issued by majority vote of the present members. If the votes are equal, the Chairman’s side will prevail.
 
Jurisdictions of the Management Board of the Center
Article (9)
The Board of Directors of the Center works to achieve the objectives of the center and the accomplishment of its duties, and therefore will exercise, in particular, the following:
1. Setting general policy to achieve the objectives of the Center and oversee its implementation.
2. Propose amendments to this Statute and submit them to the Board of Directors of Saudi Council of Engineers for approval.
3. Adoption of the rules of arbitration.
4. Adoption of the regulations to govern other alternative methods of dispute settlement.
5. Adoption of the administrative and financial regulations necessary to regulate the work of the Center.
6. Acceptance of the center's annual budget and approval of the final accounts for the past financial year.
7. Adoption of the annual report on the work and activities of the Center.
8. Appointment of Director General for the Center and his removal from office.
 
Director General of the Center
Article (10)
The Center shall have a General Manager appointed by the Board of the Directors of the Center, and determines the conditions of service, duties and dues.  He should be an experienced specialist engineering arbitrator. The Director General is the representative of the Center before the courts and before the public and private entities.
 
Article (11)
The Director General will be assisted by sufficient number of employees who are appointed in accordance with the provisions of employment determined by the regulations of the Center.
 Arbitral Tribunal
Article (12)
The Arbitral Tribunal will be constituted according to the bylaw issued by the Center's Board of Directors.
 Secretariat of the Arbitral Tribunal
Article (13)
Secretariat of the Arbitral Tribunal is part of the administration of the Center, which operates under the supervision of the Director General and reports directly to him.
Article (14)
The secretariat is concerned with receiving requests for arbitration referred to it by the Director General, along with all papers, correspondence and documents delivered by the parties of the dispute, in accordance with the procedure and terms. And, shall record the minutes of the meetings of the Arbitral Tribunal, and the implementation of the decisions issued during the consideration of the case and before the award.
 
Membership in the Center
Article (15)
The Center maintains two lists of arbitrators as follows:
1. List of engineers: They are Arbitrator Engineers who are the registered members of the Center, and qualified and accredited, according to the rules governing these activities, which are determined by the Board of Directors of the Center. Only those enlisted in this category have the right to elect and be elected to the Board of Directors of the Center.
2. List of non-engineers: They are arbitrators from outside the scope of engineering disciplines with great know-how of the law and having long experience, and are accredited in accordance with the relevant regulations. The persons in this list are not having the membership of the Center but can be chosen by the parties to their list, provided that at least one of the members of the Arbitral Tribunal to be chosen from the members’ list.
The arbitrator is required to be highly experienced and possess broad knowledge in the field of industry, finance and engineering sciences, and have a good familiarity of the Islamic Sharia, and be of high moral character, reputation, and independence of opinion.
 
Chapter IV
Arbitration Rules 
Article (16)
1. Arbitration is done in accordance with the engineering arbitration rules.
2. With the exception of the Arbitrators’ list; all papers and documents of the Center are confidential, and will not be permitted to anyone to read or reproduce other than the dispute parties with the explicit consent of the Director General of the Center and the parties of the dispute; or if the Arbitral Tribunal considers it necessary to adjudicate the dispute.
 Article (17)
The consents of both parties on submission of the dispute and its adjudication to the Arbitral Tribunal of the Center will be submitted to the Center, and without bringing the subject conflict before any other judicial authority.
 
Article (18)
The award issued by the Arbitral Tribunal in accordance with these procedures shall be final and binding on the parties, and its execution is commanded by the competent judicial authority.
 
 
Chapter V
Sources of revenue
Article (19)
The sources of revenue of the center consist of:
1. Government grants.
2. Fees charged by the Center against providing services.
3. Membership fees of the arbitrators.
4. Returns of the activities carried out. 
5. Any means of income approved by the Board of Directors.
 
Chapter VI
Arbitration Expenses
Article (20)
The amount of the expenses of the arbitration and the method of payment are determined in accordance with the guidance issued by the Center's Board of Directors.

Chapter VII
General Provisions
Article (21)
Any member of the Board of Directors has the right to request to amend this Statute, and the amendment will be recommended through voting by the Center’s Board of Directors, and shall take effect one month after its adoption by the Board of Directors of the Saudi Council of Engineers.
 

 
The Objective of the Statute:
The Engineering Arbitration Center aims at classification of arbitrators and experts in the Kingdom of Saudi Arabia to reflect the actual levels and experiences of classified arbitrators. The classification is applicable for only the engineers (SCE members).

Classification Methodology:
 
1 – Classification of Categories:
Categories are classified into four based on the affiliation type to the Arbitration Center:
1-1 Member
1-2 Technical Expert
1-3 Arbitrator, Class (b)
1-4 Arbitrator, Class (a)
 
2 – Classification Criteria
Many criteria are taken into account during the classification process, including academic qualifications and experiences of the engineer who is willing to be classified; as follows:
2-1 – Academic qualifications.
2-2 - The number of years of experience.
2-3 - Continuing Education (courses, seminars and conferences attended by the candidate).
2-4 - Qualification and membership at other arbitration bodies (Arab or international).
2-5 - Practical experience in the affairs of arbitration.
2-6 - Legal expertise in arbitration rules
 
3 –Scoring in Classification Criteria:
Each criterion of classification mentioned above has scores with intent of giving the opportunity for anyone who aspires to be classified and benefit from his experience, qualifications and activities in technical and arbitrational fields. In addition to, to encourage others to expand the circle of their work and practice to get the highest levels of classification.

The ultimate purpose is to collect scores of each criterion to reach a certain value out of one hundred score, based on which the classification level will be determined. The scores are as follows:
  3-1 – Academic Qualification:
Five scores per degree (Bachelor / Master / PhD) and a maximum of 15 scores.
  3-2 - Continuing Education:
Three scores against each participation in any seminar, course, or conference in the field of arbitration, either as a listener or as a lecturer; and maximum of 15 scores.
  3-3 – Affiliation with other arbitrational bodies:
Four scores for each affiliation with a recognized entity in the field of arbitration, whether regionally or internationally; and up to a maximum of 16 scores.
  3-4 - Practical experience in the arbitration affairs:
Four scores for each case and a maximum of 24 scores, to be supported with the documents that prove participation in arbitration cases, such as commissioning letter for case study or a copy of the arbitration report or documented experiences.
  3-5 - The number of years of experience:
Two scores for each year of experience after graduation and a maximum of 22 scores.
  3-6 - Legal expertise:
Four scores for each course in the legal procedures of arbitration, of not less than three days or a certificate in law; maximum of 8 scores.
 Note:
Must attach copies of all certificates and documents supporting the request classification as stated in item No. 2 (classification criteria) above.
 
4 - Categories:
4-1 - Member: any engineer who holds a degree of Bachelor of Engineering in any discipline.
4-2 - Technical expert: a member who has accumulated between 40 to 60 scores.
4-3 – Arbitrator, Class (b): a member who has accumulated between 61 to 70 scores.
4-4 - Arbitrator, Class (a): a member who has accumulated 71 scores or more.
 
5 - Responsibilities of SCE:
Saudi Council of Engineers will correspond with all registered arbitrators to apply for classification with supporting documents. The application form and Statute of the Arbitration Center will be supplied to them.  The Arbitration Center would study and evaluate the applications and recommend SCE to issue the certificate of classification and to collect the proposed fees.
 
 Disputes and Engineering arbitration:
 
Saudi Council of Engineers is keen to provide its technical services to resolve disputes and issues between the parties of a contractual relationship (owner, consultant, and contractor). It has, since its inception, announced its full readiness to form technical arbitration committees and specialized technical committees to resolve all kinds of technical issues and disputes encountered to professional colleagues during the implementation of different contracts.
In spite of the being established lately, Saudi Council of Engineers, since 1408 AH, has studied and completed 65 technical reports on complaints, and has gained the confidence of all the judicial authorities, particularly the Office of the Ombudsman and the high courts of major cities. Many government agencies as well as the engineering offices had approached SCE requesting its technical advices to resolve their disputes.