Arbitrating Construction Disputes
Construction disputes present unique challenges because they typically arise in the midst of a construction project and can lead to significant project delays and expenses if not quickly resolved. To mitigate these risks and avoid court litigation, the construction industry uses several forms of alternative dispute resolution, including:
Mediation.
Dispute boards.
Arbitration.
Although construction arbitration has some attributes of commercial arbitration, it is a distinct practice that requires participants to understand its unique features. With careful planning and thought, parties and arbitrators can readily mitigate the more cumbersome features of construction arbitrations to resolve disputes in an effective and efficient manner.
This article explains the factors that parties must consider when preparing for and conducting a construction arbitration. It outlines steps for parties to take when deciding to arbitrate and the process for presenting claims and defenses in a construction arbitration hearing.
(For more on construction arbitrations generally, see Construction Arbitration in the May 2023 issue of Practical Law The Journal; for more on international construction arbitrations, see International Arbitration and Construction Disputes on Practical Law.)
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Arbitrating Construction Disputes
Construction disputes present unique challenges because they typically arise in the midst of a construction project and can lead to significant project delays and expenses if not quickly resolved. To mitigate these risks and avoid court litigation, the construction industry uses several forms of alternative dispute resolution, including: Mediation. Dispute boards. Arbitration. Although construction arbitration has some attributes of commercial arbitration, it is a distinct practice that requires participants to understand its unique features. With careful planning and thought, parties and arbitrators can readily mitigate the more cumbersome features of construction arbitrations to resolve disputes in an effective and efficient manner. This article explains the factors that parties must consider when preparing for and conducting a construction arbitration. It outlines steps for parties to take when deciding to arbitrate and the process for presenting claims and defenses in a construction arbitration hearing. (For more on construction arbitrations generally, see Construction Arbitration in the May 2023 issue of Practical Law The Journal; for more on international construction arbitrations, see International Arbitration and Construction Disputes on Practical Law.)
