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1. Introduction
The UNCITRAL Arbitration Rules are a
comprehensive, internationally accepted, set of rules which parties can adopt for an
arbitration arising under their contract. These rules, however, are designed
essentially for a non-institutional form of arbitration. Neither UNCITRAL nor any other
institution plays any role in the administration of the arbitration. Lack of
institutional support often means delays and frustrations in arbitration according to
these rules.
Parties need to make special provision if they are to enjoy the benefit of institutional
support in the conduct of an UNCITRAL rules arbitration. The two main areas to be
considered are:
| (a) |
appointment of the arbitrator(s) |
| (b) |
institutional support for the progress of the arbitration |
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2. Appointment of Arbitrator(s): Appointing Authority
You should always designate an appointing authority in your arbitration agreement. The Model
Arbitration Clause, footnoted to the UNCITRAL Arbitration Rules, in fact, advises parties to
consider doing so. If you fail to do so, then, in the event, for instance, of any disagreement
about the appointment of an arbitrator, you will have to ask the Permanent Court of Arbitration
in The Hague to designate an appointing authority. The appointing authority designated by the
Permanent Court then appoints the arbitrator. This process takes time, and can result in
substantial and sometimes serious delays to the whole process.
Parties can avoid such problems by agreeing on an appointing authority beforehand. With its
substantial experience in the appointment of arbitrators and its
wide network of arbitrators in the region and beyond, SIAC is in a position to act as an
appointing authority. You may consider designating SIAC as the appointing authority in your
contract or arbitration agreement.
Where SIAC is simply designated as the appointing authority, the
Practice Notes for Ad Hoc Cases on appointment
of arbitrators, arbitrators’ fees and financial management will apply.
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3. Administration of the Arbitration
The UNCITRAL Arbitration Rules do not provide for the management of the financial and other
practical aspects of the arbitration. This is left entirely to the arbitral Tribunal and the
parties. The Tribunal fixes its own fees, determines the amount of deposits towards its fees,
collects the deposits from the parties, and pays itself at the end of the arbitration from the
deposits. The parties and the Tribunal also try to manage other administrative chores in the
proceedings.
SIAC, as an institution that regularly administers arbitrations, can provide valuable support
to the Tribunal and the parties in the management of such practical matters. Parties may consider
making provision in their contract for the administration of their arbitration cases by SIAC.
See UNCITRAL Model Clause. In this instance,
the arbitration will be considered an institutional arbitration administered by SIAC. The
Practice Notes for Administered Cases on
appointment of arbitrators, arbitrators’ fees and financial management will apply.
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4. Fees
The fees for the administration of UNCITRAL cases are based on the schedule of
administration fees.
The arbitrators' fees are based on the schedule of arbitrators' fees.
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5. Model Clause
To enjoy the full benefit of SIAC's services, parties arbitrating under the UNCITRAL Arbitration
Rules should not only provide for SIAC to act as the appointing authority; they should also provide
for the administration of their arbitration by the SIAC.
Click here for a recommended UNCITRAL
arbitration model clause.
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