If you are working on a project and your subcontractors aren’t meeting their obligations, then you may run into problems. If they’re unhappy with some aspect of the project, they may halt work or put in for payments you don’t agree with.
Regardless of the situation, one of the possible options to resolve the conflict may be to use arbitration. Arbitration is a kind of alternative dispute resolution, and it may allow you to avoid having to go to court over a conflict. Additionally, if you want to save the relationship with the subcontractor, arbitration may help you do so by making sure the conflict is firmly resolved.
How does arbitration work?
How exactly arbitration works will depend on your situation. If you have a contract with an arbitration clause, it probably sets the requirements for lawsuits or claims. For example, your contract may state that before you can pursue a lawsuit you must try arbitration.
If you previously selected the arbitrator, then you will go through the process set in your contract.
If a contract doesn’t have an arbitration clause, you won’t need to try arbitration first, but it’s not a bad idea to try it when you can. It has the potential to save you both time and money, making it easier to move on with your project.
Once you select arbitration, you and your attorneys will begin putting together a claim against the subcontractor, or, if they’re pursing a claim against you, you will build a defensive case against their claims.
Once you do this, you’ll both go through arbitration. It works like a more casual version of a trial, allowing the arbitrator to hear both sides of the situation and to make a decision based on the information provided to them.
Build your case for arbitration
Arbitration is usually binding, so you will want to be sure that you have your documents prepared and that you are ready to defend your side of events. If you are considering arbitration, you may want to start looking into your legal options and be sure that arbitration is the right choice for the circumstances.