If contractual parties cannot resolve their disputes with a mediation, another option is arbitration. An arbitration is a legally binding alternative dispute resolution process in which parties submit their grievances to an arbitrator or panel who will then settle their dispute for them.
Is Arbitration Right For You?
According to the American Arbitration Association (AAA), arbitrations are an effective way to resolve construction disputes quickly and privately. Typically, contractual parties can decide early on how they want to handle disputes before they arise. At that time, parties will need to decide if this form of dispute resolution will work for them based on the following:
- The nature of their contract
- The party they are entering into a contract with
- The risks associated with arbitration
Advantages of an Arbitration
The construction industry comes with many risks alone; dealing with a drawn out litigation only adds to this risk. Handling disputes via arbitration may be the best option for a number of reasons:
- Depending on a number of factors, arbitration is usually faster than a litigation.
- Parties get to select the arbitrator whereas with litigation, you do not have a choice in who settles your dispute.
- For those who truly want a speedier process, an arbitration lessens the likelihood of having to go through an appeal process if someone is unsatisfied with the decision.
- If you prefer that your dispute remains private, arbitration is the best option since it will be kept from the public eye.
- While arbitration is more structured than a mediation, it provides more flexibility than a litigation since it is settled outside of a court.
- Although it will cost more than a mediation, depending on the particulars of the case, it can usually cost less than a litigation since you have fewer discovery costs.
Why You Should Hire a Miami Construction Arbitration Attorney
An expert arbitration attorney can help you understand the pros and cons of an arbitration and how to go about drafting an arbitration provision into your contract that will be more beneficial to you. To ensure your arbitration is successful, you will need to rely on a qualified attorney that has experience handling the complexities of your dispute.
If you are in need of a professional construction law firm, please submit our contact request form for more information.
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.