The Value of Tiered Dispute Resolutions Clauses
Conflicts and construction often go hand and hand—it is the nature of this risky business. This does not negate the need for proactiveness on the part of the involved contractual parties. The first line of defense is the drafting of an agreement that will reduce risks. Reducing risks will reduce the likelihood of disputes. Even still, some things may fall through the cracks. This is why dispute prevention is critical. It is more effective to discuss and decide options proactively rather than reactively. The latter is often done in the midst of tension and stress. This article will discuss the value of incorporating a tiered dispute resolution clause into your agreements.
What is a Tiered Dispute Resolution Clause
A tiered dispute resolution, or multi-tiered dispute resolution, gives parties the opportunity to resolve their disputes in stages. If a party is disputing over plans and specifications, for example, this clause will serve as a guide as to how they will deal with the dispute. It may require them to settle the dispute through negotiation or mediation instead of heading straight to arbitration or participating in an arbitration before heading straight to court.
Tiered dispute resolution is valuable because it gives parties the opportunity to work together amicably to work out their issues in a more collaborative environment. At this point, parties can also gain valuable insight on their options with the help of a Miami construction lawyer, who will explain the pros and cons of pursuing legal proceedings. The lawyer is only serving as an advisor, not a third party making decisions for parties. This allows parties to make informed decisions.
No Dispute Resolution Clause
Parties do not have to choose a tiered-resolution clause per se; however, without any dispute resolution clause, parties can find themselves dealing with unnecessary factors. For instance, someone will typically start the litigation process without trying other cheaper and less time-consuming methods of resolution. Litigation does have its place, but not every dispute needs to endure a litigation. If you need to pursue a more aggressive resolution for your dispute, our Miami construction lawyers have extensive experience with arbitration and litigation and will be more than happy to represent you.
Why You Need an Attorney
Before commencing any construction project, parties should consult with a knowledgeable Miami construction lawyer to ensure their contracts are strong. Our attorneys are well-versed in construction law and we know the types of contract agreements that serve our clients well.