In the second part of our series on dispute resolution boards, we’ll explain how they work and talk about the benefits of these boards. To learn more about dispute resolution boards, you may also visit Part 1 of this series or contact one of our Jacksonville construction attorneys who can guide you through the process.
How Do Dispute Resolution Boards Work?
Along with providing recommendations to issues brought before them, dispute resolution boards can take a proactive role in the construction process. Many boards conduct site visits, review plans, and hold project meetings.
Benefits of Dispute Resolution Boards
The primary benefit of dispute resolution boards is their ability to resolve issues as they happen. Mediation typically occurs after a construction project has been completed. This is problematic because a great deal of time is dedicated to recounting the details of the conflict. The second benefit is the board itself, whether it’s an engineer, a former construction foreman or a construction attorney, they will have prior experience in the types of issues that can arise and understand how to resolve them. The third benefit is cost. As mentioned in the first part of this series, mediation can cost over $1 million. This is largely because of the resources dedicated to determining the details of the case. According to the American Bar Association, dispute resolution boards cost around $2,000 per day per member or $75,000 per year, depending on the volume of conflicts.
Disputes on construction sites can costs millions of dollars in mediation, delay construction, and, ultimately, derail projects. It’s critical to have processes in place to solve conflicts quickly and keep projects moving towards completion. Construction companies are turning to dispute resolution boards to accomplish their goals and serve as an essential part of the construction process.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.