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How arbitration can help to resolve construction disputes

On Behalf of | Dec 4, 2023 | Arbitration and Mediation, Construction Disputes

Construction disputes can arise between businesses and subcontractors or clients and construction firms. These disputes can delay the completion of a project or impact the profit margins for the company involved.

Taking a construction dispute all the way to trial could mean waiting months to resolve a disagreement. Many construction contracts require alternative dispute resolution prior to going to court. Thankfully, arbitration can be a potentially viable means of resolving disagreements about a construction project or contract.

How arbitration can help

Arbitration is much like a trial. Both parties have a theoretical right to discovery. They will be able to review records from the other party that can help them develop their case. Additionally, they will need to present their side of the matter to a neutral third party as part of the arbitration process.

The perspective of an outside party can be invaluable when trying to resolve a construction dispute. Their opinions could help the parties find a reasonable compromise or might make it clear that the claim of one party is viable given the contract that exists and that the claims of the other would have little bearing on the case should the matter go to court.

The opportunity to develop and present one side of the case could help either party recognize that they are unlikely to prevail if they go to court, which might ultimately lead to an amicable resolution outside of court. Arbitration is also more private than court proceedings, which can help professionals and companies protect their reputations from the damage that may result from public hearings related to a construction dispute.

Considering arbitration before taking a construction issue to court could work out in the favor of all parties involved in the disagreement, depending on the circumstances in question.