What is Expert Determination?

Meaning of  Expert Determination

Expert Determination is a non-binding and flexible ADR process in which the parties agree to appoint an independent third party, who is expert in a particular field, to adjudicate on a dispute within the field of his expertise. The parties may settle the dispute based on Expert Determination. The decision of the expert is not binding on the parties but it opens the doors for an amicable settlement.

Usefulness of  Expert Determination

Expert Determination is useful for determination of technical or legal disputes that require technical expertise or evaluation by an expert to assist the parties to settle the dispute. In construction contracts, the dispute relating to quantities is generally settled, based on the measurements recorded by an expert appointed by the parties. Construction contracts generally have a clause in the contract for determination of technical issues by an expert engineer or architect prior to Arbitration. Expert Determination is also useful where the parties want to reduce the cost of litigation or Arbitration and they are genuinely interested in an early and fair settlement.

Advantages of Expert Determination

Expert Determination is an ADR process, which is very simple and does not require formal meetings and presentation of pleading and evidence. It is an efficient, economical and efficient process in which the parties can maintain a cordial relationship.

Procedure Expert Determination

The procedure for an Expert Determination is decided by the parties or the expert. The process is very flexible and efficient which may involve following steps:

(a) a meeting between the expert and the parties to decide the process for the determination;

(b) providing relevant information or evidence to the expert;

(c) a visit to the site of dispute for determination by the expert;

(d) decision by the expert;

(e) consideration of the decision by the parties;

(f) settlement of the dispute.