Construction is all about building and maintaining relationships. In construction, your name is your currency so it is important to refrain from being overly litigious — but at the same time you must protect yourself and your business. One way to preserve relationships with clients and suppliers is to include an alternative dispute resolution (ADR) clause in your contracts.
An ADR clause can keep your disputes out of the courtroom, but it is important to understand what these methods are and why they are beneficial. A Miami construction dispute lawyer will help you understand each method in detail, however there are a few basics to know.
What are ADR Methods?
There are many elements that can factor into the type of ADR process your construction firm elects to pursue. For example, some ADR processes are non-binding, whereas others are legally binding. The two most common forms of ADR are mediation and arbitration.
The main point of ADR is to keep disputes out of the courtroom. In mediation and arbitration, a third-party will still help you come to a mutually beneficial agreement with the assistance of a Miami construction mediation attorney.
Why Choose ADR?
For many construction firms involved in a dispute, the most practical and cost-effective option to resolve their issue is with ADR. ADR is less formal than litigation and doesn’t involve a judge or jury. Depending on the type of ADR process selected, this may be a binding decision or just advice to resolve the issue.
Other benefits of ADR include giving both parties more control. The parties can schedule hearing times tailored to their schedule and determine what type of evidence can be used in the proceedings rather than adhering to a courtroom’s schedule. ADR gives both parties complete control over the type of legal proceeding they want to take on.
ADR is also accelerated and cost-effective as litigation can be a drawn out process that takes months, if not years, to seek a resolution. Further, ADR can be a great way to mend or preserve professional relationships. The ADR process can resolve disputes in an effective and positive way where both parties agree to a compromise that accommodates the other party’s needs.
How to Avoid Possible Disputes with ADR
If you are hoping to learn more about ADR methods and how to include them in your current and future projects, Miami construction dispute lawyers with Cotney Construction Law can help. Before altering any contract, you should always seek legal counsel.
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.