If parties choose not to designate a particular institution, they opt for ad hoc arbitration. In ad hoc arbitration, the parties administer the arbitration themselves. In drafting an arbitration clause, you should determine whether you want institutional or ad hoc arbitration and, if you chose institutional arbitration, care should be taken to select an arbitral institution that can support your specific needs. Institutional arbitration offers the advantage of having an independent body provide structure to the arbitration. The institution will typically provide a list of recommended arbitrators, assist in scheduling, and often provide conference facilities.
Most arbitral institutions have their own procedural rules.
The procedures can vary considerably from institution to institution. For example, the ICC requires formal terms of reference at the start of the proceeding and approval of awards by the ICC Court prior to the awards being issued by the arbitrators. In contrast, the WIPO has specialized rules for expedited proceedings. The most significant advantage in using an arbitral institutions arises where the parties are unable to reach basic agreements regarding the conduct of the proceeding. For example, where the parties cannot agree on the appointment of arbitrators, the arbitral institution may make the appointment.