International Arbitration: A Lever for Compliance in the Construction Industry
Why is compliance becoming part of arbitration?
Compliance mechanisms no longer concern only state courts: they now extend into arbitration as well. In the construction sector, contracts increasingly include clauses on social responsibility, ethics, and sustainability. Arbitrators must interpret these commitments, which are often vaguely worded, and determine their legal scope.
A rapidly evolving regulatory framework
This trend is supported by major pieces of legislation:
• The French law on the duty of vigilance (2017)
• The European Corporate Sustainability Due Diligence Directive (2024)
These norms, reinforced by international standards (UN, ISO 26000), impose extensive obligations on companies in terms of human rights and the environment. They permeate contracts and directly influence arbitration proceedings.
What impact does this have on the construction sector?
Exposed to climate and social risks, this sector is seeing arbitration become a regulatory tool. Arbitrators are no longer limited to settling commercial disputes: they contribute to the implementation of compliance commitments, ensuring the credibility and sustainability of projects.
Article written by Christophe Lapp, Partner at Fidal
Published in the book L’obligation de compliance (The Compliance Obligation), co-published by the Journal of Regulation & Compliance and Lefebvre Dalloz, in the Régulation & Compliance collection.