How to Start a Construction Arbitration or ADR Claim in Croatia

Construction disputes in Croatia, whether they involve delayed handover, defective works, unpaid interim certificates or disputed variation orders, rarely resolve themselves. When negotiation stalls, the question becomes tactical: how do you start a construction arbitration or ADR claim in Croatia without losing evidence, missing contractual deadlines or forfeiting the right to interim relief? At Hanžeković & Partneri, I regularly advise employers, contractors and subcontractors through precisely this inflection point, and the single most important lesson is that what you do in the first few days shapes the entire proceeding. This guide sets out the practical steps, institutional pathways and evidence-preservation measures that I recommend to every client at the outset of a Croatian construction dispute.

This article provides general legal information and does not constitute legal advice. Every dispute turns on its own facts and contractual terms. I recommend engaging qualified Croatian counsel before taking any formal step.

Quick Start: 8-Step Checklist for the First Few Days

If you are looking for a concise answer to how to start construction arbitration or an ADR claim in Croatia, begin with the eight steps below. Each is expanded later in this guide.

1. Check your contract’s dispute-resolution clause. Identify the agreed forum (arbitration, mediation, court), seat, governing law, language and any pre-arbitration steps such as engineer’s determination or amicable settlement periods. Failure to follow a multi-tier clause can result in an objection related to the non -admissibility of the claim.
2. Preserve all site evidence immediately. Secure daily logs, photographs (with metadata), progress reports, procurement records, interim payment certificates, variation orders and test results. Lock down digital servers and restrict deletion rights.
3. Issue contractual notices. Most construction contracts require written notice of a claim within strict time limits (FIDIC 1999edition based contract are often used in Croatia). Serve notice in the form and manner the contract specifies, late or defective notice is a common ground for defence.
4. Engage specialist counsel and a technical expert. Construction arbitration in Croatia demands both legal and technical preparation from day one. Appointing a quantum or delay expert early anchors your case.
5. Determine the appropriate ADR route. If not pure-agreed in the contract, assess whether arbitration, mediation or court litigation best serves the dispute’s size, complexity, cross-border dimension and relationship dynamics. The comparison table below will help.
6. File the notice of arbitration or refer the dispute to the dispute board or file the mediation request. Under the Zakon o arbitraži (Arbitration Act), arbitration commences when the respondent receives the notice. Under the HGK Permanent Arbitration Court’s Zagreb Rules, you file directly with the institution.
7. Consider interim relief and security. If there is a risk of asset dissipation, destruction of evidence or ongoing works damage, apply to the arbitral tribunal or to Croatian courts for interim measures under the Civil Procedure Act (Zakon o parničnom postupku).
8. Preserve payment instruments. If a bank guarantee or performance bond may be called, take immediate steps to prevent wrongful encashment, or to preserve your right to call on it.

Understand Your Dispute: ADR vs Court Litigation in Croatia

Before filing anything, it pays to step back and choose the right forum. Croatian law offers three principal pathways for resolving construction disputes: arbitration, mediation and court litigation. Each has distinct advantages and trade-offs, particularly in construction where technical complexity, multi-party involvement and the need for confidentiality often weigh heavily.

The FIDIC based contract regularly contain multi-tired dispute resolution clause including reference of the dispute to the dispute board.

Arbitration is the dominant ADR mechanism for high-value Croatian construction disputes. Proceedings are private, awards are final and binding, and enforcement internationally is straightforward under the New York Convention. The Croatian Arbitration Act, published in Narodne novine, is modelled on the UNCITRAL Model Law on International Commercial Arbitration, giving foreign parties confidence in procedural standards.

Mediation works best when the parties have a continuing commercial relationship, for example, on a phased project where disputes arise mid-construction. Croatia transposed EU Directive 2008/52/EC on mediation in civil and commercial matters, and the HGK Mediation Centre offers an established framework with accredited mediators experienced in construction matters.

Court litigation remains the fallback where no arbitration clause exists and where the parties cannot reach agreement to refer the dispute to arbitration. However, Croatian commercial courts can take considerably longer than arbitration, and hearings are public.

Comparison Table: ADR Routes for Construction Disputes in Croatia

In my experience, many Croatian construction contracts, particularly those based on FIDIC conditions, contain multi-tier dispute resolution clauses that require negotiation or a Dispute Adjudication Board step before arbitration. Skipping a mandatory tier can expose a claimant to non-admissibility of the claims, so reviewing the clause with care is essential before choosing your path.

Step-by-Step: How to Start Arbitration in Croatia

If your contract mandates arbitration, or both parties agree to arbitrate after the dispute has arisen, the following procedural sequence applies to construction arbitration in Croatia.

Step 1, Review the Arbitration Clause

Identify the applicable arbitration rules (e.g., the Zagreb Rules of the HGK Permanent Arbitration Court, ICC, or ad hoc under the Arbitration Act), the seat of arbitration, the language and the governing substantive law. A valid arbitration agreement obliges Croatian courts to decline jurisdiction.

Step 2, Prepare and Serve the Notice of Arbitration

Under the Arbitration Act, arbitration proceedings commence on the date the respondent receives the written request (notice) to arbitrate. A well-drafted notice should include:

• Identification of the parties, full legal names, registered addresses and contact details.
• Reference to the arbitration agreement, the specific contract clause and any amendments.
• Summary of the dispute and claims, a concise narrative of the factual and legal basis, including the relief sought and a preliminary quantification.
• Nomination of arbitrator, if the clause or rules require the claimant to nominate an arbitrator with the notice.
• Proposed seat, language and procedural rules, if not already fixed by the clause.

If you are filing under the Zagreb Rules of the HGK Permanent Arbitration Court, submit the notice and required documents directly to the Court’s secretariat. The Zagreb Rules set out specific requirements for the content of the request, the number of copies and the advance on costs that must accompany the filing.

Step 3, Appoint the Tribunal

Construction arbitrations in Croatia commonly proceed with either a sole arbitrator (for lower-value disputes) or a three-member tribunal. Under institutional rules, each party nominates one co-arbitrator and the two co-arbitrators select the presiding arbitrator. If the parties cannot agree, the HGK Permanent Arbitration Court appoints on their behalf. For complex construction matters, delay analysis, defects quantification, concurrent causation, I recommend a tribunal with proven technical familiarity or at least readiness to engage party-appointed experts.

Step 4, First Case-Management Conference

Once constituted, the tribunal will convene a procedural conference to agree the timetable, exchange of submissions,  expert evidence and hearing dates. 

Ad Hoc vs Institutional Arbitration in Croatia

Parties may arbitrate on an ad hoc basis under the Arbitration Act without any institutional involvement. While this offers flexibility and can reduce administrative fees, it carries practical risks: there is no appointing authority if the respondent refuses to cooperate, no emergency arbitrator mechanism and no institutional oversight of procedural fairness. For most construction disputes, I advise clients to opt for institutional arbitration, typically through the HGK Permanent Arbitration Court or ICC arbitration, precisely because construction claims tend to involve urgent interim relief, multi-party coordination that benefit from institutional support.

Can Foreign Parties Arbitrate in Croatia?

Yes. Croatia’s Arbitration Act incorporates principles aligned with the UNCITRAL Model Law on International Commercial Arbitration. Foreign parties may choose Zagreb as the seat of arbitration, benefit from the same procedural protections as domestic parties and enforce awards internationally under the New York Convention. Conversely, parties may choose a foreign seat while applying Croatian substantive law.

Mediation and Other ADR: How to Start and Practical Benefits

Mediation for construction disputes in Croatia is gaining traction, particularly for mid-value claims where preserving the commercial relationship matters. The HGK Mediation Centre, part of the Croatian Chamber of Economy’s ADR infrastructure, administers mediation proceedings using accredited mediators with sector-specific expertise, including construction.

To initiate mediation, a party typically submits a written mediation request to the Centre (or the agreed institution), identifying the parties, the nature of the dispute, the relief sought and whether any contractual mediation clause applies. The Centre then contacts the other party and, if both sides consent, appoints a mediator from its panel. 

Key practical points for mediation in Croatia construction disputes:

• Timing. Mediate early, ideally before positions harden and legal costs escalate. However, mediation can also be effective at a later stage, even once arbitration has commenced.
• Costs. Mediation is substantially cheaper than arbitration. The mediator’s fees and administrative charges are typically shared equally, and the process can conclude in a single day or a few sessions.
• Enforceability. A mediated settlement agreement can be given the force of an enforceable title if notarised in line with the Croatian Mediation Act.
• Confidentiality. Mediation proceedings are confidential, and statements made during mediation are not admissible in subsequent arbitration or litigation without consent.

Early Preservation Steps for Construction Claims: Evidence and Experts

Construction claims are won or lost on the quality of the contemporaneous record. From the moment a dispute crystallises, your priority must be to secure, organise and protect the evidence that will underpin your case, whether in arbitration, mediation or court. This is one area where I see parties consistently underperform, and it is entirely preventable.

Documents to preserve immediately:

• The contract suite, main contract, annexes, schedules, general and particular conditions, specifications, drawings and any amendments or addenda.
• Variation orders, signed and unsigned, with all supporting correspondence.
• Payment records, applications for payment, interim payment certificates, final payment certificates, bank guarantee instruments.
• Programme and delay records, baseline programmes, updated schedules, extension-of-time applications, delay notices, weather records.
• Site records, daily logs, inspection reports, progress photographs (with dates and metadata), quality-control and test results.
• Correspondence, letters, emails, meeting minutes, instructions from the engineer/employer’s representative.
• BIM and digital models, if applicable, preserve all model versions and audit trails.

Do:

• Issue a document-hold notice to all relevant staff, subcontractors and consultants.
• Back up digital files and restrict deletion permissions on project management platforms.
• Engage a technical expert (quantum, delay or defects specialist) at the earliest opportunity, their input shapes the claim narrative and prevents costly re-work later.
• Photograph or sample any physical evidence (defective materials, incomplete works) before conditions change.

Don’t:

• Allow site personnel to discard daily logs, hand-marked drawings or “informal” records, these are often the most valuable evidence.
• Delay expert engagement until after the notice of arbitration, by then, site conditions may have changed irreversibly.
• Assume digital records are safe, server migrations, licence expirations and staff departures can destroy critical data.

Interim Relief and Security: Tribunal vs Croatian Courts

One of the most time-sensitive decisions when you start a construction arbitration or ADR claim in Croatia is whether to seek interim measures, and from whom. Croatian law provides two parallel avenues.

Interim Measures from the Arbitral Tribunal

Under the Arbitration Act, an arbitral tribunal (once constituted) may grant interim measures to preserve evidence, maintain the status quo, prevent asset dissipation or prevent irreparable harm. Under institutional rules such as the Zagreb Rules, a party may apply for interim relief as soon as the tribunal is in place, but also prior to the constitution of the arbitral tribunal. In this case the President of the Permanent Arbitration Court shall decide on interim measure or he shall appoint a sole arbitrator from the list of arbitrators. Some institutional rules, such as ICC Rules,  also provide for an emergency arbitrator mechanism, allowing relief even before the full tribunal is constituted, a critical tool in construction disputes where demolition of partially completed works or encashment of a performance bond may be imminent.

Interim Measures from Croatian Courts

Even where an arbitration agreement exists, Croatian courts retain jurisdiction to grant interim measures under the Civil Procedure Act (Zakon o parničnom postupku) and the Enforcement Act.

Applications for court-ordered interim relief must demonstrate urgency and a risk that the claim will otherwise be frustrated. In my experience, Croatian commercial courts are generally willing to grant interim measures in support of arbitration provided the applicant can show a prima facie case and genuine urgency.

Costs, Timetable and Likely Durations for Construction ADR in Croatia

Cost management is a recurring concern for clients embarking on construction arbitration in Croatia. The principal cost elements are:

• Institutional administration fees, under the Zagreb Rules of the HGK Permanent Arbitration Court, these are calculated on the basis of the amount in dispute and are published in the Court’s fee schedule.
• Arbitrators’ fees, typically calculated ad valorem under institutional scales or agreed hourly rates in ad hoc proceedings.
• Legal representation fees, counsel costs represent the largest variable; early case budgeting and phased submissions help control these.
• Expert fees, quantum, delay and technical experts can account for a significant portion of total costs in complex construction cases.

As a rough guide, a mid-complexity construction arbitration before the HGK Permanent Arbitration Court with a three-member tribunal typically runs 9–18 months from notice to final award. Mediation, by contrast, can be resolved within weeks. Court litigation in Croatian commercial courts commonly takes 12–36 months at first instance, with appeals extending timelines further. I always advise clients to request a detailed cost estimate from the institution and to build a staged litigation budget that accounts for expert engagement, document production and hearing preparation.

Enforcement of Awards and Settlement Remedies in Croatia

A domestic arbitral award rendered in Croatia is final and binding. Enforcement follows the procedure set out in the Arbitration Act and the Enforcement  Act. A party seeking enforcement files a request with the competent Croatian court, attaching the original award (or a certified copy) and the arbitration agreement. Courts may refuse enforcement only on the narrow grounds specified in the Arbitration Act, procedural irregularity, lack of jurisdiction, public policy or non-arbitrability.

For cross-border enforcement, Croatia is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Awards rendered in Croatia can therefore be enforced in over 170 contracting states, and foreign awards are enforceable in Croatia on the same terms. This international enforceability is a significant advantage over court judgments, which may require more complex recognition procedures.

Mediated settlement agreements can be given enforceable status by notarization, offering a practical alternative where parties reach a negotiated resolution. 

Key Contacts and Resources

• HGK Permanent Arbitration Court, Croatian Chamber of Economy, Rooseveltov trg 2, 10000 Zagreb. Administers institutional arbitration under the Zagreb Rules and provides the panel of arbitrators. For more detail, visit the HGK Alternative Dispute Resolution page.
• HGK Mediation Centre, operates within the same Chamber; accredited mediators with construction experience are available through the Centre’s panel.
• Arbitration Act (Zakon o arbitraži), published in Narodne novine, NN 88/2001.
• Civil Procedure Act (Zakon o parničnom postupku), consolidated text available in Narodne novine, NN 148/2011 (and subsequent amendments).
• Ministry of Justice and Public Administration, mpudt.gov.hr, for court listings, judicial contacts and legislative resources.
• Croatian Bar Association (Hrvatska odvjetnička komora), for finding admitted advocates: hok-cba.hr.

Conclusion and Recommended Next Steps

The decision to start a construction arbitration or ADR claim in Croatia is rarely taken lightly, but delay almost always works against the claimant. Evidence degrades, contractual time bars pass, and the respondent’s financial position can deteriorate. My advice to any party facing a construction dispute is to act as soon as possible: review the contract clause, issue the required notices, lock down your document record and engage specialist counsel and technical experts. Whether the right route is arbitration before the HGK Permanent Arbitration Court, or other institution, such as ICC, mediation through the HGK Mediation Centre or, in some cases, court proceedings, early preparation preserves your remedies and strengthens your position from the outset.

Sources

1. Narodne novine, Zakon o arbitraži (Arbitration Act), NN 88/2001
2. Narodne novine, Zakon o parničnom postupku (Civil Procedure Act), NN 53/1991 and subsequent amendments
3. Narodne novine, Ovršni zakon (Enforcement Act ), NN 112/12, 25/13, 93/14, 55/16,73/17, 131/20, 114/22, 06/24
4. Narodne novine, Zakon o medijaciji (Mediation Act) NN 27/2026
5. Croatian Chamber of Economy (HGK), Permanent Arbitration Court & Mediation Centre
6. EU Directive 2008/52/EC on Mediation in Civil and Commercial Matters
7. Ministry of Justice and Public Administration (Republic of Croatia)