Originally from International Arbitration Law and Practice, Third Edition

10.1. Ad Hoc or Administered Arbitration

One of the many long debated issues in the arbitration field is whether ad hoc arbitration is more effective than administered arbitration.

Views have been expressed from every different angle.

As very properly summarized by Aksen,1 each formula may have advantages.

Amongst the advantages of ad hoc arbitration, cost and speed have been mentioned. In ad hoc arbitration one saves on the fees of the arbitral institution, but in ad hoc arbitrations the arbitrator’s fees are frequently much more expensive.

Furthermore, this additional cost will have to be compared by taking into account the quality of service which such bodies provide.

As to speed, ad hoc arbitration may be faster since there are no long debates as to the “terms of reference” if the arbitrators are keen to proceed quickly.

The involvement of an arbitral institution may add one part to the exchange of correspondence. However, one cannot say that the existence of an arbitral institution always materially delays the proceedings.