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Arbitration can be a good choice for construction disputes

The construction business can be complicated, lucrative, and competitive. All too frequently, construction disputes arise between construction companies, contractors, property owners, or other parties. Frequently, the parties involved turn to alternative dispute resolution (ADR) or litigation for a resolution.

Arbitration and litigation both have their upsides and downsides. Every construction dispute is different, so the process through which to resolve it will be unique to the situation. Sometimes, arbitration is preferable to litigation. Litigation can be lengthy, expensive, and public - a trifecta that no company wants. In this post, we'll discuss whether arbitration could be the right option for your dispute.

  • Arbitration can be faster

Litigation can be a long process. The time from the initial dispute to the court decision can take months or even years. Arbitration cases are often solved more quickly. This is not necessarily to say that arbitration will resolve your construction dispute in a matter of days. The negotiation process can still take quite a bit of time. But when compared to the time that it takes to resolve the issue at trial, arbitration can be very appealing.

  • It can be less expensive

Litigation can also be pricey. Arbitration can be significantly less expensive. It is a particularly appealing solution for smaller companies that do not have the deep pockets to fund litigation.

  • Professionals are available to help

One of the benefits of arbitration is that it allows parties to resolve a dispute privately, but can also use an experienced arbitrator to guide the process. Sometimes, the parties that are involved in a dispute cannot see beyond their own interests, resulting in petty quarreling that only wastes time. Attorneys who specialize in construction arbitration offer much-needed outside perspective and professional experience while guiding a dispute to a resolution.

  • The dispute stays private

When a construction dispute goes to court, each party's dirty laundry is hung out for the world to see. No business wants the bad press involved with a contentious lawsuit, especially when negative gossip can spread so quickly among clients, vendors, and employees. Arbitration keeps the entire process private: The details of your issue will remain between you, your attorney and the other party.

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