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NAI Binding Advice in general

Is the NAI’s consent required for the inclusion of a binding advice clause that refers to NAI binding advice proceedings?

Such consent is not required; however, in some cases it is advisable to consult the NAI in advance.


How much do NAI binding advice proceedings cost?

The costs of NAI binding advice proceedings are explained in the Rules. Basically, it works out as follows:

The costs can be divided into a number of categories. First of all, there are the NAI’s administration costs. These are calculated according to financial interest, based on a scale from EUR 800 (interest of less than EUR 100,000) to a maximum of EUR 25,000 (interest of more than EUR 30,000,000).

Then there are the fees and disbursements of the binding advisor(s). The fees are determined on the basis of three criteria: the time that the binding advisor(s) spent on the case, the monetary interest and the complexity of the case. In practice, account is taken of the number of hours that the binding advisor spent on the case and the hourly rate agreed with the binding advisor involved before confirmation of his appointment by the secretariat. The arrangements are made pursuant to the guidelines set by the Executive Board.

In this context, it should be pointed out that, in practice, three binding advisors generally cost twice as much as one binding advisor. Therefore, in the case of a relatively small interest (less than EUR 500,000), the appointment of one binding advisor is generally recommended.

A third category of costs includes the costs that are not incurred in every binding advice proceedings, e.g. the fees for a secretary, expert or interpreter.

Finally, there are the costs of legal assistance if a party is assisted by an attorney.

In view of the foregoing, it is not possible to give a detailed specification of the total costs of binding advice proceedings yet to be conducted. However, the parties can prepare a cost estimate themselves using the above details. In that regard, account should also be taken of the expected outcome of the proceedings, as the unsuccessful party will have to pay the costs, except in special events at the binding advisor’s discretion.

How long do NAI binding advice proceedings take?

The average duration of NAI binding advice proceedings is nine months. The duration depends on the complexity of the dispute and particularly the methods of litigation used by the parties (and their attorneys).

Does the NAI administer certain binding advice proceedings?

This question is sometimes asked by interested third parties, such as reporters. In view of the confidential nature of NAI binding advice proceedings, the NAI Secretariat cannot answer this question, whether in the affirmative or the negative.

Does the NAI also administer international binding advice proceedings?

Yes. The Rules are flexible enough to be suitable for both national and international binding advice proceedings.



Questions about the NAI

Frequently asked questions about the Netherlands Arbitration Institute

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Recommended literature

For more in depth knowledge, a list with recommended literature is available