Does Arbitration Work in Construction Disputes?

If you find yourself a party to a construction dispute in Montgomery, Alabama, a review of your contract may reveal that arbitration is your next step if you wish to elevate the issue. Arbitration clauses are included in many construction contracts in an effort to take advantage of the alternative dispute resolution benefits associated with arbitration and to avoid the downside of pursuing traditional courtroom litigation.

In arbitration, the basics of the dispute are provided to a neutral third party, which can either be a panel or an individual. The decision that is handed down by this individual or panel is binding unless the parties agree for it to be non-binding. Compared to litigation, arbitration is less formal and tends to be more efficient in addressing construction disputes in Montgomery. Since it’s more efficient, parties toconstruction dispute arbitration tend to reap cost and time savings from going through the process.

Just because arbitration is less formal than litigation doesn’t mean that you should take it lightly, especially when the outcome of the case is binding. Before heading into arbitration, it can be helpful to have your documents reviewed by a construction expert so that you are prepared for what to expect come arbitration time.

In many cases, parties to construction disputes in Montgomery find that arbitration is an effective alternative for resolving conflicts when compared with litigation. Arbitration provides a neutral forum where the facts of the case are reviewed efficiently so that the project can move forward and allow both parties to get on with their lives as quickly as possible. It has been successfully used as a method for resolving construction disputes for many years, and can be especially effective as a tool when you know what to expect and are prepared for it.