Can arbitration resolve complex construction disputes?

There are myths out there about alternative dispute resolution processes, such as arbitration, taking longer than and being as costly as litigation. However, according to the American Arbitration Association, in the construction industry, alternative dispute resolution (ADR) techniques have been used for a while, and, are in fact less expensive and more expeditious.

Federal court statistics indicate that the average length of time for a jury or bench trial is about two years. Data from the American Arbitration Association shows that if parties choose arbitration to resolve their dispute, the matter takes less than a year.

Additionally, because judicial processes take a tremendous amount of time, and lawyers aften charge by the hour, taking a case to trial generally increases the construction litigation cost. This cost can be attributed to the lengthy discovery process and depositions that parties may want to conduct during complex construction disputes. However, if parties choose to arbitrate, then the parties can curtail their discovery to document exchanges, and also limit the number of depositions.

When complex construction disputes are at issue, arbitration offers parties a less adversarial venue, faster resolution to the dispute, and is lower in cost when compared to litigation. Rather than a jury deciding the case, when parties choose to arbitrate, the dispute is resolved by qualified experts, and the process is completely confidential.

In essence, many construction disputes can be resolved through an alternative dispute resolution process such as arbitration. If interested in learning about this option to resolve a construction dispute, consider contacting an experienced construction litigation attorney for more information.

Source: American Arbitration Association, “Construction Industry,” Accessed December 2, 2014