In the construction industry, disputes often involve sensitive financial, technical, and commercial information. Protecting this information is critical for maintaining reputations, business relationships, and competitive advantage. Mercantile Barristers is a London-based legal chamber specialising in construction law. They offer construction barrister, construction legal advice, construction legal assistance, construction law help, construction law advise, construction solicitor and construction contract solicitor services. They also handle construction contract lawyer, construction dispute barrister/solicitor/lawyer matters including construction adjudication and construction arbitration.With the Arbitration Act 2025, confidentiality remains a central feature of arbitration, even though the Act itself does not impose statutory confidentiality obligations. Understanding the role of confidentiality and implementing best practices is increasingly important for construction projects in 2025. Why Confidentiality Matters in Construction Arbitration Construction projects typically involve multiple stakeholders, including developers, contractors, subcontractors, consultants, and financiers. Disputes may touch on: Proprietary construction methods or designs Cost structures, payment claims, and financial arrangements Strategic project decisions and commercial negotiations Without confidentiality, sensitive information could be disclosed in public courts, harming reputations, jeopardizing future contracts, and creating competitive disadvantages. Arbitration provides a private forum, enabling parties to resolve disputes discreetly. Confidentiality Under the Arbitration Act 2025 While the 2025 Act does not create a statutory obligation of confidentiality, it preserves the established practice of confidential proceedings and encourages parties to rely on institutional rules. Prominent arbitral institutions such as the London Court of International Arbitration (LCIA), the International Chamber of Commerce (ICC), and UNCITRAL rules typically include confidentiality provisions covering: Hearings and procedural documents Tribunal deliberations Expert reports and evidence submissions Awards and settlement agreements By adhering to these rules, parties ensure that sensitive construction information remains protected throughout the arbitration process. Strategic Implications for Construction Projects 1. Protecting Commercial Interests
Confidentiality allows parties to pursue disputes without revealing sensitive project information to competitors, the media, or other stakeholders. This is especially important for high-profile infrastructure or commercial projects where reputational risk is significant. 2. Facilitating Settlement
Parties are often more willing to negotiate and settle disputes when they are assured that proceedings remain private. Confidential arbitration can encourage open discussion of potential resolutions without fear of public exposure. 3. Minimizing Disruption to Ongoing Projects
In public litigation, disputes can attract media attention and stakeholder scrutiny, which may disrupt project progress. Confidential arbitration preserves the focus on project delivery and operational continuity. 4. Legal and Contractual Alignment
Construction contracts frequently reference confidentiality obligations for dispute resolution. Incorporating institutional arbitration rules or express confidentiality clauses ensures that all parties understand their responsibilities and reduces the risk of inadvertent disclosure. Best Practices for Maintaining Confidentiality Construction firms should take proactive measures to safeguard information during arbitration: Include Express Confidentiality Clauses in Contracts: Clearly define the scope of confidentiality for documents, hearings, and communications. Reference Institutional Rules: Specify the arbitral institution whose confidentiality rules will apply, such as LCIA or ICC. Limit Information Access: Restrict sensitive data to essential personnel, including legal teams, project managers, and experts. Implement Secure Communication Channels: Use encrypted platforms for document sharing and virtual hearings to prevent unauthorized access. Train Project Teams: Ensure that contractors, subcontractors, and consultants understand the importance of confidentiality and their obligations under the contract and arbitration rules. Risks of Breaching Confidentiality Breaching confidentiality can have serious consequences: Loss of commercial advantage if sensitive information is leaked Potential contractual liability or damages claims Negative reputational impact affecting future projects and partnerships Increased likelihood of disputes escalating if confidential matters become public By enforcing confidentiality rigorously, construction firms reduce these risks and enhance the integrity of the arbitration process. Conclusion Confidentiality is a vital component of construction arbitration, safeguarding commercial interests, maintaining stakeholder trust, and enabling efficient dispute resolution. While the Arbitration Act 2025 codifies procedural improvements, it continues to rely on established institutional rules and contractual clauses to preserve privacy. Mercantile Barristers provides specialist guidance on confidentiality in construction arbitration, advising on contract drafting, procedural compliance, and risk management. By embedding confidentiality practices into dispute resolution strategies, construction firms can protect sensitive information, maintain project momentum, and achieve fair and private outcomes.