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Real estate

Construction

Construction is a historic field for arbitration. No special rule restricts it: contract for work, architect's or engineer's mandate, sale of materials or of real estate, everything is arbitrable between the parties.

What you can submit

  • Quality of the work and warranty for defects, price of the work, fees and their statement.
  • Deadlines, penalties for delay, claims for damages, termination.
  • Liability of the contractor, the agent, the architect, the engineer or the seller.

What remains reserved

  • Statutory lien of tradespeople and contractors: the provisional, urgent registration remains a matter for the state court; the merits of the secured claim remain subject to arbitration.
  • A mere reference to the SIA 118 standard is not sufficient to establish arbitration: an express clause is indispensable.
  • Non-party third parties: a subcontractor, a supplier or a third-party owner who has not accepted the clause cannot be bound by it.
  • Consumers: a dispute with a consumer building owner is arbitrable, but where the consumer is the respondent it is arbitrated only if the consumer accepts arbitration once the dispute has arisen (Rules art. 10 paras. 3 to 6). In a contract concluded with a consumer, use the clause for consumer contracts. Form: art. 358 CPC is sufficient.

The clause

Ready to insert into your contracts. Copy it, or generate a personalised version.

Translation for information; for a Swiss-law contract the French version is recommended.

General clause (works contract, mandate or sale)

Article [X] - Arbitration 1. Any dispute, difference or claim arising out of or in connection with this contract, in particular as to its conclusion, validity, interpretation, performance, defects, amendment or termination, shall be finally settled by arbitration administered by CONCORDA (www.concorda.ch), to the exclusion of the ordinary state courts and of the conciliation procedure. 2. The following are covered in particular: the quality of the work and the warranty for defects, the price of the work, the fees and their statement of account, the deadlines, the penalties for delay, claims for damages, termination, as well as the liability of the contractor, the agent, the architect, the engineer or the seller. 3. The arbitration is conducted in accordance with the CONCORDA Arbitration Rules in force at the time proceedings are commenced, which form an integral part of this clause. The parties expressly exclude the application of Chapter 12 of the Federal Act on Private International Law (PILA), in accordance with article 176 paragraph 2 thereof, and submit the proceedings exclusively to Swiss domestic arbitration (art. 353 et seq. CPC). The arbitral tribunal is composed of a sole arbitrator. The seat of the arbitration is at Monthey. The language of the proceedings is French. The award is final and constitutes an enforceable title (art. 387 CPC), the remedies before the Federal Supreme Court remaining reserved (art. 389 et seq. CPC). 4. The jurisdiction of the state court is reserved for urgent interim measures, in particular the provisional entry of a statutory mortgage of tradespeople and contractors (art. 837 et seq. CC), the constitution of the arbitral tribunal not excluding that jurisdiction. The merits of the secured claim remain subject to arbitration. There also remain reserved disputes involving third parties not bound by this clause and acts reserved to the state authorities.
See the other variants (2)

Short clause

Any dispute arising out of or in connection with this contract shall be finally settled by arbitration, in accordance with the CONCORDA Arbitration Rules, by a sole arbitrator, seat at Monthey, French language, to the exclusion of the state courts and of the conciliation procedure. The jurisdiction of the state court remains reserved for urgent interim measures, in particular the provisional entry of a statutory mortgage. Chapter 12 of the PILA is excluded (art. 176 para. 2 PILA).

Reference via the SIA standard (express clause to be added)

In addition to SIA Standard 118, the parties expressly agree that any dispute relating to this contract shall be settled by arbitration in accordance with the CONCORDA Arbitration Rules, to the exclusion of the state courts. Chapter 12 of the PILA is excluded (art. 176 para. 2 PILA).

The models are shown without a penalty clause. You can add it in the generator by ticking the box provided.

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Related fields

Sales contracts

Sales disputes are of a financial nature and freely disposable, and are therefore arbitrable without any particular restriction. This applies to the sale of movables as well as to the sale of real estate.

See the area

Mandate and services

Mandate and services disputes are of a financial nature and freely disposable, and are therefore arbitrable. Revocation at any time (art. 404 CO) is mandatory but does not preclude arbitration: the Federal Supreme Court has so held.

See the area

Rights in rem

Rights in rem disputes are arbitrable between the parties in their financial dimension: easements, neighbour relations, ordinary co-ownership, real estate charges. Land register operations and authentic form remain reserved to the authorities.

See the area