The inclusion of a dispute resolution clause in a commercial contract can insure that, should a dispute arise from that contract, it will be resolved through mediation and/or arbitration rather than by litigation. The value to the parties to such a contract are many. They include:

Flexibility: The procedures are more flexible than litigation, staying within the control of the parties.

Cost: Litigation is expensive. Not only must lawyers' fees and disbursements be taken into account, but also the demand on management time for prolonged discoveries and review of documents. The Centre's rules provide for discovery, but they can be limited and expedited.

Time: The litigation process can be lengthy and debilitating from a business viewpoint, pending the final resolve of the dispute which could take, depending on the nature of the dispute, 5 or more years through the appeal process. There is generally no appeal from the arbitration decision except for the correction of errors that are referred back to the arbitrator(s). Confidentiality: The process under the Centre's rules is confidential. The extent to which any publicity is granted is entirely within the control of the parties and the arbitrator(s).

Choice: The parties are free to choose their own arbitrator(s) failing which the Centre has a list of panel members who are recommended to each side and who are selected on the basis of their expertise in the area in question. If there is a failure of each side to select an arbitrator(s), under the Centre Rules the arbitrator(s) is then appointed by the Centre.

Selection: The Centre has a Panel of commercial arbitrators and mediators who range from judges to senior lawyers, accountants, appraisers, architects and engineers.

Jurisdiction: The arbitrator(s) has general jurisdiction over the proceedings, and is not bound by the Rules of Court, to allow the parties to present with equity and fairness their position to the neutral. The arbitrator(s) must decide the dispute in accordance with the law governing the dispute. Timeliness: The award of the arbitrator(s) in British Columbia must be made no later than 60 days after the closure of the arbitration hearings thus avoiding delays.

Certainty: The award to the arbitrator(s) is final and binding and may, under section 29 of the Act, be enforced as an order of the Court. This brings certainty to the proceedings, so often sought by the business community. Relationships: All of the above factors can aid and assist in the preservation of a healthy and continuing commercial relationship between the parties. The proceedings are normally not as adversarial as those found in court and, if counsel approaches the proceedings with the "arbitral spirit" as well as the parties themselves, a continuing relationship is the likely outcome.

Why Name The Centre in your ADR clause?

• Including an Alternative Dispute Resolution (ADR) clause in a contract provides insurance that disputes arising from the contract will be not result in litigation.

• Naming the British Columbia International Commercial Arbitration Centre (the Centre) in the ADR clause provides assurance that the ADR procedures chosen will be carried out efficiently and effectively, in accordance with pre-established procedures and rules.

• An arbitration clause in a contract is an important step in ensuring disputes will be resolved without the cost, length of time, uncertainty and publicity of the courts. But what happens when a dispute actually arises from that contract?

• In a perfect world, where the parties agree that there is a dispute which needs to be resolved and where they and their counsel are co-operating, it may appear that involving the Centre and the Centre's fees is not really necessary. However parties should ask themselves if the added cost of developing one's own rules of procedure and dealing with problems when the process runs off the rails is worth the savings.

• The Centre has well established rules of procedure that can be adjusted to suit the needs of the parties. Please note that use of the Centre's rules assumes administration of the process by the Centre.

• Most disputes do not evolve in a co-operative environment. More often than not one side does not agree with allegations being made and may not respond to a request to arbitrate. This is, of course, where the Centre really comes into its own. A request to arbitrate filed with the Centre, together with supporting documentation and the commencement fee, constitutes the commencement of the arbitration, and the clock begins to tick from that moment. The Centre's rules provide very clear directives that must be followed for the appointment of an arbitrator and for the procedures to be followed. The arbitration will proceed with or without the co-operation of all parties.

• Without the Centre or a similar administrative institution, if one party does not co-operate, it may become necessary to obtain a court order in order to proceed with the arbitration and appoint an arbitrator. This is not only time consuming but is usually more costly than the Centre's commencement fees, presently $500 for disputes of under $50,000 and $1,500 for those in excess of that amount.

• Including an ADR clause in a commercial contract, naming the Centre as the administrator of the procedure, involves no cost to the parties to a contract. On the other hand it represents a considerable savings to the parties at a later date, should a dispute arise out of the contract. The savings are usually gained through significant reductions in the time taken to resolve the dispute together with related reduction in legal expenses. The long-term savings come from reduced disruptions to business and to business relationships.

  The services provided by the Centre fall into five categories:

• Information and advice on alternative dispute resolution and arbitral institutions.
• Model contract clauses for future disputes.
• Rules of procedure for arbitration, mediation and other dispute resolution methods.
• Administering the infrastructure to ensure the smooth and efficient conduct of arbitrations and mediations.
• The provision of skilled arbitrators and mediators from the panel certified by the Centre. The British Columbia Commercial Arbitration Act expressly stipulates that, unless the parties to an arbitration agreement otherwise agree, the rules of the Centre shall apply to all arbitrations falling within the scope of that Act. At least forty-nine statutes of British Columbia and at least thirty-four statutes of Canada require or encourage the use of arbitration for the resolution of disputes. Thousands of contracts, both international and domestic, contain "model" arbitration clauses that stipulate the application of the Centre's rules and the use of the Centre as the authority for appointment of arbitrators and the administration of the arbitration.

  To conclude, the inclusion of the Centre in the ADR clause of a contract costs nothing. In return it provides parties to the contract with certainty that disputes, should they arise, will be dealt with in a way which will keep conflict to a minimum and which will allow for the expeditious and cost effective resolution to the process.