Arbitration is a process where parties to a dispute agree to submit their conflict to one or more arbitrators. The arbitrator(s) hear both sides and make a binding decision called an “award.” Arbitration is often less formal than court proceedings but still follows a structured process. It is commonly used in commercial, construction, and international disputes.

Conciliation is a more flexible and informal process. A conciliator assists the disputing parties in reaching a mutually acceptable settlement. Unlike an arbitrator, the conciliator does not issue a binding decision but facilitates communication, clarifies misunderstandings, and suggests solutions. Conciliation is more collaborative and non-adversarial in nature.