Dispute Resolution by ‘Expert Decisions’: Illustrated by the Norwegian Expert Procedure and the SCC Express

Abstract

Arbitration is the preferred dispute resolution mechanism for disputes in international contracts. The typical feature of alternative methods for dispute resolution is that they aim to enable the parties to resolve their dispute faster and in a more cost-efficient manner.
          Swift dispute resolution may be vital in certain contracts, typically in long-term contracts where a pending dispute may complicate or even undermine the essential spirit of cooperation. For example, disputed variation orders (DVOs) between a Contractor and its client may disrupt their cooperation and strain the liquidity of the Contractor. Similarly, disputes between the parties to a joint venture agreement may cause a deadlock, which again may lead to a most unfortunate outcome where the joint venture cannot fulfil its obligations to the end client. A full-scale arbitration process is rarely cost-efficient and proportional in minor disputes.