Arbitration

Understanding Arbitration Arbitration is a form of alternative dispute resolution (ADR) that has gained significant traction over the years, particularly in the construction industry. Unlike traditional litigation, which involves going to court, arbitration allows parties to resolve their disputes privately and often more efficiently. The process involves a neutral third party, known as an arbitrator, who listens to both sides and makes a binding decision. Key Differences Between Arbitration and Civil Litigation in the Courts One of the primary distinctions between litigation in arbitration and litigation in the courts is the setting. Arbitration is typically conducted in a private setting, which can be more conducive to open communication and quicker determinations. In contrast, litigation in the courts is a public process that takes place in courtrooms and often involves extremely detailed and lengthy procedures. Court litigation can take substantially longer to get to an end result, requiring each of the parties to jump through more hoops in the process, driving up the attorney’s fees incurred by all involved. Another notable difference is the flexibility of arbitration. Parties involved in arbitration can choose their arbitrator, set their schedules, and define the framework that will govern the proceedings. This level of control

Specific Functions and Responsibilities An arbitrator in the construction industry plays a crucial role in resolving disputes that arise from complex construction projects. Their primary function is to act as a neutral party who listens to both sides of a dispute, evaluates evidence, and makes a binding decision. This role requires a deep understanding of construction law, contract interpretation, construction terms, the different roles and responsibilities of the persons involved with construction projects, the applicable standards of care, and the complicated issues that can arise both during and after completion of construction projects. Arbitrators manage the arbitration process from start to finish, in conjunction with counsel for the parties. This involves conducting preliminary hearings, setting schedules, ensuring compliance with procedural rules, and ultimately delivering an impartial award. In construction disputes, arbitrators may need to consider technical details, such as construction means and methods, industry standards, and both foreseeable and unforeseeable events which can impact project timelines. Importance of Industry-Specific Knowledge The importance of having an arbitrator with industry-specific knowledge cannot be overstated. Construction projects involve technical issues that an arbitrator without decades of construction litigation experience might not fully understand or appreciate. An arbitrator with a background in construction litigation,

Overview of Disputes Ideal for Arbitration Arbitration is particularly well-suited for a variety of disputes, especially those arising in the construction industry. This section provides an overview of the types of disputes that are ideal for arbitration and why they are better suited for this form of dispute resolution. Contract Disputes One of the most common types of disputes in the construction industry involves contracts. These disputes can arise over the interpretation of the laws governing construction contracts, contract terms, performance obligations, and the scope of work. Arbitration is ideal for contract disputes because it allows parties to choose an arbitrator with specific expertise in construction contracts, providing a basis for a more informed and reasonable determination. Payment Issues Disputes over payment are another frequent occurrence in the construction industry. These issues can involve delayed payments, non-payment, or disputes over the amount due. Arbitration provides a faster and more efficient resolution to these issues compared to litigation in the courts, which can be both lengthy and costly. The private nature of arbitration also helps maintain business relationships by resolving disputes discreetly. Delays and Scheduling Construction projects are often subject to factors which extend the construction timeline, due to circumstances which