More than any other industry, the construction industry embraces arbitration. Many construction contracts require the use of an Alabama construction arbitrator if a dispute arises. Additionally, many individuals prefer arbitration over litigation for the many benefits that it provides. For these reasons, the question is not if you will need to use an Alabama construction arbitrator but rather when you will.
Historically, arbitration has been utilized because it represented a much less expensive process than traditional litigation. Complex construction disputes can cost millions to litigation while you can usually participate in the arbitration process for a fraction of the cost. Additionally, arbitration does not require all of the typical discovery processes and rules of evidence as litigation, so the process is less expensive and time-consuming as litigation. Time is particularly important in the construction industry, so being able to more quickly resolve a case can help minimize financial consequences. Litigation may tie up a contract for years until the case is ultimately resolved. Then, an appeal may ensue, potentially dragging the case on even longer. Arbitration tends to be more final, and there are usually only limited circumstances when an arbitration decision will be vacated.
Construction contracts often contain confidential information, including bids, architectural ideas, client relationship details and other provisions that the parties want to keep private. Arbitration is a private and confidential matter, so these details can stay confidential through this process unlike the public nature of courtroom disputes.