Fast-Track Binding Advice

In addition its other proceedings, the RvA has also been offering Fast-Track Binding Advice Proceedings since 18 November 2016. These Fast-Track proceedings are exclusively intended for the expedited resolution of disputes during construction, where a binding decision is required within a very short period of time.

The expertise of the Binding Advisor makes these proceedings particularly suited to disputes in which preliminary relief proceedings before the ordinary court or the RvA would not be appropriate because of the limited opportunities for investigation and provision of proof in such cases.

The decision is in any event binding until a competent court or arbitrator decides otherwise at first instance in proceedings to be instituted after completion. If one of the parties wishes to make use of this option, he must make this known within fourteen days after the date of the decision.

The decision becomes definitively binding if none of the parties indicate within this period that they are unable to concur with the decision. In formal terms, the Binding Advice is therefore conditional.

As the FT proceedings do not form part of the RvA’s Arbitration Rules, but are laid down in special FT Rules, the parties must explicitly agree to FT proceedings.

The parties may, in consultation with the RvA, make procedural arrangements that are at variance with the standard proceedings, thus enabling the approach to be tailored in light of the nature and urgency of the dispute.

For the purposes of assessing whether a dispute is suitable for FT proceedings, a management meeting may be held between the parties and an FT Coordinator (an arbitrator) at very short notice (two working days) following notification of the dispute to the RvA, at which meeting further procedural arrangements may also be made.

Fixed rates apply to standard proceedings: two written rounds (with documents of limited length), a hearing and a written decision: € 7,500.00 for 1 Binding Advisor and € 12,500.00 for 3 Binding Advisors (excluding VAT)*.

The FT Rules can be found here > FT-Binding Advice English

Overview of characteristics:

  1. short processing time thanks to: 
    • simultaneous submission of documents by the parties
    • short deadlines for submitting documents
    • limited length of documents
  2. parties at liberty to choose 1 or 3 Binding Advisors
  3. verbal decision within (no more than) 7 weeks after commencement of proceedings
  4. written decision within (no more than) 9 weeks after commencement of proceedings
  5. fixed rates for standard proceedings: € 7,500.00 for 1 Binding Advisor and € 12,500.00 for 3 Binding Advisors (excluding VAT)*
  6. division of costs is always 50/50 and the parties always bear their own legal costs
  7. the decision becomes definitively binding if none of the parties indicate that they are unable to concur with the decision within fourteen days after it is issued
  8. if one of the parties does so indicate, the decision is in any event binding until decided otherwise by the competent court or arbitrator after completion
  9. in view of the nature of the proceedings, the decision is not public
  10. in consultation with the RvA, the parties may agree on procedures and a processing time at variance with these principles, thus facilitating a tailored approach.
  11. *) rates apply as of 18 November 2016 until further notice


Background
On 17 November 2016, Presolve (a centre of expertise for dispute-free construction) was launched. This is an initiative by (at present) eight experienced, professional building dispute mediators, including two RvA arbitrators (mr. Paul Smeets and mr. Alexa Gratama). Via this expertise centre, they offer parties in the building industry a number of options for engaging in dispute-free construction.

For cases in which a dispute regrettably arises nonetheless, there proved to be a need for proceedings before the RvA with the characteristics of the FT proceedings. This emerged from market research conducted by Presolve. Consequently, the RvA developed the FT proceedings at Presolve’s request. Presolve is now able to offer these proceedings before the RvA within its range of instruments, but you are, of course, also welcome to approach the RvA directly for these FT proceedings.

For more information, please contact Ms mr. M. Niesen or mr. J.S. van Luik (+31 (0)30-2343222).