Using mediation or arbitration to settle a construction dispute

Alabama construction projects often involve many moving parts. Sometimes, disputes arise over the cost of materials, how long it takes to complete a project and similar conflicts. As a home- or business owner, you may want to take a contractor to court if you feel he or she ripped you off or otherwise wronged you in some way. However, you may want to consider some possible alternatives to litigation before doing so.

Per Construction Executive, you may no option other than to litigate a construction dispute in some cases. However, other times, you may find that engaging in some type of alternative dispute resolution is easier and faster than litigating your construction dispute. What forms of alternative dispute resolution might you want to consider?

Mediation

Construction dispute mediation is not unlike divorce mediation in that both involve opposing sides coming together to sort through their differences with an unbiased third party. Should you decide to mediate your construction dispute, know that this often involves the mediator listening to both perspectives and then issuing an opinion about how you might settle the dispute. A mediator’s word is not bound by law, but rather, a suggestion.

Arbitration

Arbitrating a construction dispute also involves opposing sides coming together with a third party. However, in arbitration, the decision of the unbiased third party is a legally binding one, meaning it is fully enforceable by law.

Many construction disputes are avoidable. Having a solid, carefully drafted construction contract in place before any work starts may help lower your chances of finding yourself embroiled in a construction dispute.