The absence of an arbitration clause was the common denominator in development contracts of property giant Megaworld Corp. which has proven to have placed contractors in a disadvantage.

A spokesperson of Datem Corp. said not paying their suppliers or contractors is already their standard operating procedure, or SOP."

Yet, Megaworld's standard form of contract has a "No arbitration clause," which Datem has been attempting to negotiate to revise for the past few years.

"Yes, arbitration is the ideal venue to settle any disputes," Datem legal counsel Rufino Policarpio said.

"Arbitration is a special way of settling disputes, which in the Philippines is done through the Construction Industry Arbitration Commission, or CIAC," he added.

The lawyer said Datem had asked "for an arbitration clause but were repeatedly denied."

Other Megaworld contractors have sought the same provision in their contracts which expedites disputes since filing cases with courts take excruciatingly long to settle.

Monocrete Construction Philippines Inc., which  wrote the giant company and issued an invitation for it to submit "the foregoing dispute (on a P185 million claim)… with the CIAC for the confidential resolution of this matter."

"Kindly inform us of Megaworld's decision on this request within fifteen (15) days from receipt of this letter. Should Megaworld fail to respond within the said period, Monocrete shall interpret it as Megaworld's unwillingness to confidentially resolve this matter with the CIAC and Megaworld's preference to undergo a public trial on its scheme to defraud one of its contractors for a Project that it has been enjoying the fruits thereof since 201," it explained.

Big suppliers of the company will file similar claims against the real estate firm following Daily Tribune's story about the Quezon City Regional Trial Court's issuance of a writ of preliminary attachment to cover P873 million in Megaworld obligations, the Datem spokesperson said.