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How is the arbitration to be administered?

Institutional or ad hoc? Read on to learn more.
An institutional arbitration is one that is administered by a specialist arbitral institution under its own rules of arbitration. Amongst the most well-known in the ASEAN+6 region are International Chamber of Commerce (ICC), Singapore International Arbitration Centre (SIAC), Hong Kong International Arbitration Centre (HKIAC) and China International Economic and Trade Arbitration Commission (CIETAC).

The rules of each arbitral institution tend to follow a broadly similar pattern. What is common to all sets of rules is that they are formulated specifically for arbitrations that are to be administered by the institution concerned and are usually incorporated into the main contract between the parties by means of an arbitration clause (often the institution’s own model clause, but with additions).

An ad hoc arbitration is one that is not administered by an institution. Parties to an ad hoc arbitration may establish their own rules of procedure (provided those rules treat the parties with equality and allow each party a reasonable opportunity of presenting its case).

Alternatively, and more often, the parties may agree that the arbitration will be conducted without involving an arbitral institution, but according to an established set of rules, such as the UNCITRAL Arbitration Rules or the rules of an arbitral institution, which provide a sensible framework within which the tribunal and the parties may add any detailed provisions as they wish.

© Source: Michael Mcllwrath and John Savage, International Arbitration and Mediation: A Practical Guide (Kluwer Law International, 2010).
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International Arbitration: Frameworks and Drafting an Arbitration Agreement

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