If two parties to a contract have a dispute that requires resolving under the terms of the contract, they have a number of options available to them. Many standard forms of contract have a dispute resolution clause that provides for any dispute to be referred to arbitration. Bespoke contracts may have similar clauses. Where such provision for arbitration is made in a contract, the dispute must be referred to arbitration. Any application to a Scottish Court with the dispute based on a contract containing an arbitration clause will result in the Court referring the action to arbitration. When no such contractual provision is made, the parties to a dispute can agree to refer the matter to arbitration.

The first stage in the arbitration process is for the Claimant to issue a Notice of Arbitration to the other party, the Respondent. The Claimant will normally propose the appointment of an Arbitrator. The Respondent can accept or reject the proposed Arbitrator. If agreement between the parties cannot be reached on that or any other individual, then there is a fallback position. It is that the party wishing to proceed with the Arbitration will invite the appointing authority named in the Arbitration clause to make the appointment.

The appointing authorities in Scotland include the Law Society of Scotland and other professional institutions as well as the Scottish Council for International Arbitration.

If the Arbitration clause does not provide for an appointing authority then the parties can agree who the appointing authority should be. Failing agreement, application will be made to the Court of Session, Edinburgh by way of summary application to make the appointment.

An Arbitration can only start once an Arbitrator has been appointed and has accepted office. Parties have to agree upon terms of conditions under which an Arbitrator is prepared to accept the appointment. Once this arrangement is in place, the Arbitrator may decide to hold a preliminary meeting to deal with routine administrative points or simply order the party who is the Claimant to lodge his Statement of Claim within an appropriate period and for the other party, the Respondent, to answer the Statement of Claim within a suitable period. Such procedure would be appropriate where it is recognised by the Arbitrator and the parties that written pleadings are necessary or appropriate.

A preliminary meeting could deal with the following administrative points:-
1. The identity of the parties.
2. The nature of the claim.
3. Seat of the Arbitration.
4. The rules which are to apply, e.g. Scottish Arbitration Code.
5. Whether or not a site visit is necessary.
6. Interim remedies, e.g. the preservation of evidence or the recovery of documents and so on.
7. Representation
8. Expert witnesses
9. The timetable for the Arbitration

After any preliminary meeting, the Arbitrator will set the process in motion according to the procedures agreed with the parties, usually by issuing interlocutors or directions to the parties.