What is Construction Arbitration Zimbabwe?

We live in a time when the construction industry is in over-drive. There is a significant amount of works being carried out by contractors, property developers and engineers to mention a few. Equally, a lot of individuals and entities are entering into various building and construction contracts (General Conditions, Bills of Quantities, Letter of Acceptance, Contract Agreement and Deed of Suretyship) in respect of the works being carried out.

What is arbitration?

Disputes arising from the ‘interpretation, performance, non-performance or inadequate performance’ 1 of construction contracts are a feature of our everyday life. Arbitration is a private and consensual method of dispute resolution in which the disputants agree to submit their disputes to a neutral party for a final award which will be binding on the parties. Each party thus, puts its case before an arbitrator who then listens to the parties, considers the facts and the arguments, and then makes a decision.

Our courts uphold the principle of sanctity of contracts, unless there are special circumstances which justify a departure. Thus, where a construction contract contains an arbitration agreement, or an arbitration clause, the courts generally will refer such matters for determination by arbitration.

In Doves Funeral Assurance (Pvt) Ltd v Zimbabwe Platinum Mine (Pvt) Ltd HH 103-17 it was held that:

‘The existence of an arbitration clause is generally a valid defence to a law suit as it generally has to be complied with as a condition precedent. The Arbitration Act [Chapter 7:15] is clear that any dispute which the parties have agreed to submit to arbitration may be determined by arbitration.