3 Things Your Arbitration Clause Must Get Right

When you sign a contract, the arbitration clause is often just a clause near the end. But if a dispute ever happens, that clause decides how much it costs you, how long it takes, and whether you can even enforce the result.

1.Pick the institution that's actually easier for you

“Easier” comes down to three practical things: how fast cases move, how much it costs, and how actively the institution manages your case versus leaving everything to the arbitrators. For businesses handling disputes in or around Southeast Asia, here's how the three most common choices compare:

Institution	Best for	Typical speed	Good to know
SIACSingapore	Southeast Asian business disputes; generally the regional default	~13.8 months average¹	Consistently rated one of the world's top 5 preferred institutions; handled 625 new cases in 2024, 91% international.²
HKIACHong Kong	Disputes where the other side has mainland China connections	Comparable to SIAC³	Common compromise choice for China-linked deals; handled 352 new cases in 2024, 77% international.⁴
NCACNational Commercial Arbitration Centre, Cambodia	Domestic Cambodian transactions, local real estate, and highly regulated local sectors	Depends on case complexity⁵	The only independent commercial arbitration centre in Cambodia; primarily handles real estate, construction, and banking disputes.⁶

2.How many arbitrators should decide your case?

This is really a simple trade-off between cost and speed on one side, and thoroughness on the other.

One arbitrator

Sole arbitrator

Faster to constitute, cheaper (one fee instead of three), and generally used for lower-value or less complex disputes. Most institutional rules default to a sole arbitrator unless the contract says otherwise or the amount in dispute crosses a certain threshold.

Three arbitrators

Panel

Each party typically nominates one co-arbitrator, and the presiding arbitrator is either agreed upon by the co-arbitrators or appointed directly by the institution. Costs roughly three times as much and takes longer to organise, but gives more balanced, carefully considered decisions — worth it for large or complex disputes.

3.Don't confuse “governing law” with “seat of arbitration”

These two terms get mixed up constantly, and mixing them up is itself one of the most common causes of a broken clause. Think of it this way:

Governing law

The legal framework a tribunal applies to resolve the substance of a dispute. In arbitration there is not just one governing law — there can be several, each applying to a different aspect of the process.

Seat of arbitration

The legal “home” of the arbitration. It decides which country's courts can oversee the process (for example, to hear a challenge against the final award) and which procedural rules apply. It doesn't have to match the governing law, and hearings can physically happen elsewhere.

Which governing law is “best”?

There isn't a single best answer — it depends on the deal — but here's how businesses typically decide:

English law
The leading international commercial standard. Extensive case precedent offers predictability for financial transactions, maritime deals, and cross-border trade.
Singapore law
A common neutral choice for Asian regional commerce. Modern, commercially progressive, and frequently paired with Singapore as the legal seat under the International Arbitration Act.
Cambodian law
The necessary choice for onshore Cambodian transactions involving real property or regulated operations. Seating the arbitration in Phnom Penh under the Law on Commercial Arbitration 2006 (modelled on the UNCITRAL Model Law) pairs seamlessly with NCAC procedural rules to keep enforcement local and straightforward.

4.Don't let your clause be “broken” from day one

A “pathological” clause has gaps or contradictions that cause confusion, or even make it unenforceable, right when you need it most. This usually happens when the clause was copy-pasted or drafted without enough thought.

Red flags to check for before you sign

The clause names an arbitration body that no longer exists.
It says disputes go to “the courts” in one line and to “arbitration” in another, contradicting itself.
It never says where the arbitration will happen, how many arbitrators there are, or which rules apply.

Sources

Aceris Law, The Duration of Arbitration.
The 2025 International Arbitration Survey: The Path Forward – Conflict of Laws.
HKIAC, Costs and Duration.
The 2025 International Arbitration Survey: The Path Forward – Conflict of Laws.
NCAC, Arbitration Rules (EN).
NCAC, Why Arbitration.