There are advantages to resolving a construction dispute without going to court; however, there may be times when litigation is necessary. There are several different ways to resolve a construction dispute based on the needs and goals of the parties.
Different ways to resolve a construction dispute
There are several different methods of resolving a construction dispute and the first is for the parties to negotiate between themselves. It allows the parties to lay out their concerns and if they are able to negotiate a resolution, it will be the quickest and most efficient way to resolve their dispute.
Another option, which may be required under some instances, is mediation. Mediation is a private and confidential process that utilizes the services of a third-party intermediary, the mediator, to help the parties resolve their dispute.
Evidentiary and testimonial rules do not apply like they would in court or arbitration; the mediator shuttles back and forth between the parties to help them reach a settlement that may be enforced by a court.
The arbitration process is another option that may be required by the parties’ contract. Arbitration is a binding process that involves many aspects of litigation. Usually, a panel of judges decides the arbitration. As a trial, there is a discovery process, and evidentiary and witness requirements can apply.
Lastly, litigation can be seen as a last resort but may be necessary in some cases. Given the options, settling a construction dispute may be the most economical way to reach a resolution.
It is also helpful to keep in mind that construction disputes may come up for different reasons. There may also be methods of resolving disputes included in the construction contract that parties to a dispute need to be aware of.
That is one of the many reasons it is important to carefully negotiate a construction contract and construction law resources can help you do that and resolve any disputes that come up.