Part 2 Specific Issues of Arbitration in Brazil, 17 Construction Contracts between Private Parties

Subject(s):

Arbitral agreements — Relationship between international and domestic law

This chapter describes arbitration involving construction contracts in Brazil. Construction contracts are known for being highly specialized in their form and use of terminology. Among the features of these contracts is the wide use of arbitration as a method of resolving disputes arising in connection with them, especially disputes requiring in-depth technical knowledge. The Brazilian Arbitration Law (BAL) provides that ‘all persons capable of entering into contracts can resort to arbitration to settle disputes referring to transferable property rights and claims. It can be affirmed that almost all construction contracts contemplate these types of rights and claims, which allow the use of arbitration to resolve any disputes arising in connection with those contracts. Moreover, the possibility of having a specialist who knows the subject matter in dispute sitting on the arbitral tribunal is perhaps the greatest advantage of arbitration. With respect to construction claims, this advantage becomes even more salient given the complexity of such claims. The chapter then studies each step of arbitral proceedings concerning construction contracts in Brazil, especially those conducted between private parties.