CEVAP:

Ad hoc arbitration: When parties are silent and have not selected an institutional arbitration, the arbitration will be ad hoc. While agreeing on ad hoc arbitration, the parties may agree on the arrangements for initiating the procedure, selecting the arbitrators, determining the procedural rules etc. Ad hoc arbitration is generally favored where the parties are unable to agree on the arbitration institution. When parties have opposing views as to which institution to choose, ad hoc arbitration is often the compromise. Another advantage of ad hoc arbitration is that it can be less expensive than institutional arbitration because fees of some institutions are very high.