Ce Construction Corporation v. Araneta Center

Summary

This landmark construction arbitration case involved a 25-year business relationship between contractor CECON and developer ACI for the Gateway Mall project. The dispute arose when ACI failed to timely accept CECON's bid, fundamentally changed the project scope from design-and-construct to construct-only, and never executed formal contract documents despite undertaking to do so. The Supreme Court definitively ruled there was no meeting of minds on the contested P1,540,000,000.00 lump-sum price due to expired bid validity, scope changes, and multiple revisions. The decision reinforced CIAC's technical expertise in construction disputes, limited grounds for judicial review of arbitral awards to questions of law only, and established that arbitral tribunals may properly use contractual interpretation principles when definitive instruments are absent. The case demonstrates the importance of timely contract formation and the consequences of prolonged negotiations that fundamentally alter original terms.