NHBC - No Enforceable Arbitration Agreement

The NHBC or National House-Building Council seeks to raise

standards in the home building industry to protect UK

homeowners. There are roughly 20,500 registered builders who

commit themselves to building homes in accordance with the NHBC

standards of construction. The NHBC's warranty and

insurance policy, referred to as the Buildmark Scheme, protect

over 30% of existing homes in the UK.

In a recent case involving a home with the benefit of the

NHBC Buildmark Scheme, the TCC considered whether an arbitrator

had been properly appointed in a dispute between a construction

company and home owners. The developer argued that the NHBC

dispute procedure within the Buildmark Scheme was not clear

enough to be a binding arbitration agreement under the

Arbitration Act 1996.

The court agreed with the...