Close X

New York Construction Law Blog

What are the benefits of an arbitration clause in your contract?

Posted by Karl Silverberg | Feb 09, 2023 | 0 Comments

No one wants to anticipate a dispute when starting a construction project. All being well, everything goes swimmingly and both parties reach the end happy with the work that's been carried out.

Unfortunately, however, disputes are inevitable and unavoidable in some circumstances. To avoid the need for long drawn out court battles, many construction companies instead turn to arbitration before taking legal action.

What is arbitration and what are the benefits?

Arbitration is a form of alternative dispute resolution

When two parties to a construction contract are in dispute, arbitration is a process carried out by an independent third party.

The arbitrator acts as the judge in the matter and will make a decision as to what the parties' rights and obligations are. At the conclusion of the arbitration process, the parties agree to (and are obliged to follow) the ruling of the arbitrator.

Why is it beneficial?

Firstly, it's intended to be less formal and more cost-effective than taking a matter to court. The process is supposed to be one where each party is encouraged to come together and reach a resolution that works for everyone. There's no need to adhere to the strict rules of evidence as there would be with a court hearing so it's intended to be a much more inclusive and fulfilling process.

Additionally, it's a much quicker process than waiting for a court date. Arbitration hearings can be scheduled at a time that suits all parties rather than being at the liberty of the court's schedule. 

It can be difficult to know where to start with the arbitration process. Having the assistance of an experienced legal professional can help you to get started.

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Arrange A Free Consultation Today

Call 631-904-0307 to schedule a free consultation

Contact Us Today

Silverberg P.C. is a law firm focused on serving the construction industry in the New York City and Long Island regions. Review Us