Model Clause 7 - Construction

Construction & Long-Project Clause

Includes Standing Neutral appointment, early warning provisions, and Dispute Avoidance Board mechanism for long-duration projects. Designed for EPC, FIDIC, and infrastructure contracts.

Construction · EPC · Infrastructure

UNIONE™ › Model Clauses › Construction & Long-Project Clause

1 Standard 2 Multi-Tier 3 Enforcement-First 4 Expedited 5 Three-Member 6 Technology & AI 7 Construction 8 Ultra-Light

The Clause Text

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UNIONE™ Official Model Clause 7

Any dispute, controversy or claim arising out of or relating to this agreement shall be subject to the following multi-tier process: (1) Standing Neutral appointed within 30 days of execution of this agreement; (2) Early warning procedure under Article 9 of the UNIONE™ Rules; (3) Dispute Avoidance Board review within 28 days of any notice of dispute; (4) Final resolution by arbitration administered by UNIONE™ in accordance with the UNIONE™ International Arbitration & Dispute Resolution Rules, with arbitrators drawn from the UNIONE™ Construction & Engineering specialist panel. The seat of arbitration shall be [INSERT SEAT]. The language shall be [INSERT LANGUAGE].

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Best used for

EPC and turnkey construction contracts, FIDIC-based projects, infrastructure concessions, PPP agreements, real estate development projects, and any contract with a duration exceeding 18 months where disputes arising mid-project need structured management without stopping the project.

Drafting Notes & Guidance

The construction clause is the most complex of the eight variants and is deliberately so. On long-duration projects, the relationship between the parties - contractor and employer, or developer and funder - needs structured maintenance mechanisms to avoid disputes crystallising into full arbitration. The Standing Neutral, early warning procedure, and Dispute Avoidance Board are three sequential intervention mechanisms before formal arbitration is invoked. In most well-structured construction projects, the majority of disputes are resolved at one of these three stages.

What This Clause Activates

UNIONE™ Rules v3.0 - all 61 articles governing procedure, evidence, and award
Procedure - Stage 1 Prevention (mandatory) → Stage 2 Dispute Avoidance Board → Stage 3 Standard Arbitration
Tribunal - Three-member tribunal (recommended) · Drawing from Construction & Engineering specialist panel
Enforcement Readiness Review (ERR) - Mandatory - all awards
New York Convention alignment - every UNIONE™ award is structured for recognition across 170+ signatory jurisdictions
AI Evidence Protocol - Article 28 governs AI-generated or AI-assisted evidence in all UNIONE™ proceedings

📋 Before Using This Clause

All UNIONE™ model clauses are provided for guidance only. Parties should obtain legal advice before incorporating any arbitration clause into a binding commercial agreement. The AI Clause Generator produces a customised version of this clause for your specific transaction - always reviewed by counsel before signature.