What happens if my contract has an arbitration clause?
If you sue in court on a matter covered by the clause, the other party can apply to stay the court action under section 6 of the Arbitration Act 2001, and the court will generally send the dispute to arbitration unless there is sufficient reason not to. Arbitration is private and final, but the parties pay the arbitrator and the institution. For small renovation disputes it may cost more than the claim.
From the RRD Field Guide, checked against the sources cited in Resolving Renovation and Construction Disputes in Singapore: CASE, Mediation, Small Claims, SOPA Adjudication, Courts and Arbitration. General information, not advice for your project.
The fuller picture
Choose the route by who you are, the dispute type and the amount. Consumers usually start with CASE. Claims up to S$20,000 (S$30,000 by consent) filed within 2 years can go to the Small Claims Tribunals, without lawyers. Contractors owed progress payments under written contracts can use SOPA adjudication. Larger claims go to mediation, the Magistrate's Court (to S$60,000), District Court (to S$250,000) or arbitration.
More questions on this topic
- Can I take my renovation contractor to the Small Claims Tribunals?
- Can a contractor use the Small Claims Tribunals to recover an unpaid renovation bill?
- Does CASE mediation cost anything?
- Can a renovation contractor use SOPA against a homeowner?
- My neighbour's renovation is causing noise and damage. Where do I go?
- Do I need to send a letter of demand before going to court?
- What evidence do I need for a renovation dispute?