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The best way to use arbitration is choose to
use it before any disputes arise. During the formulation
of the contract, both parties (the client & the contractor, for example)
should agree to a
clause which specifies that any contractual disputes will be settled using
arbitration. Of course, arbitration can be used anytime
the two parties agree that it should be used. However, unless the
clause
is included in the contact the use of arbitration is entirely
optional.
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The first step to using arbitration is for one
or both of the disputing parties to contact the CDB and obtain the "Request
for Arbitration Form (CAC01)". The
form is filled in by the person or firm (the "claimant")
requesting the arbitration . In the form, the Claimant describes the
basis of the dispute and who the other party is ("the
Respondent"). The completed form is submitted to the CDB
for processing.
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The CDB will contact the Respondent and send
them a "Reply to Request for Arbitration
Form (CAC02)". This form informs the Respondent that a
request for arbitration has been lodged against him/her and asks for a reply
to the request. In the case of involuntary arbitration (such as
when a clause has been included into the contract), the Reply to the Request
is mandatory.
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The Respondent will complete the Reply to
Request for Arbitration Form and return it to the CDB. If applicable,
the Respondent will also inform the CDB of its choice of
arbitrators. The CDB will then notify both parties and begin
arranging the arbitration.
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Both parties will be notified of the
arbitrators chosen by the CDB to hear the case. Both parties
will have the right to accept or decline any arbitrators chosen.
This process will continue until a panel of acceptable arbitrators is
decided.
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The Panel of Arbitrators, the Claimant and
Respondent will then meet at a specified place and time for the
"hearing". Subsequent meetings may be held by
the arbitrators until a decision in the case is reached.
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The Panel of Arbitrators will issue an award
form that specifies their decision, and any awards provided. This
form is a legally binding document.