Construction Arbitration and Mediation

Arbitration can decide the dispute. Mediation only works if the parties agree.

Many construction contracts require arbitration or mediation before a dispute can proceed to court. Arbitration is a private dispute resolution process that can replace court litigation. It functions similarly to hiring a private judge, and the parties typically pay for the arbitrator’s time. Discovery rights are often more limited than in court, and the arbitrator’s decision is usually binding.

Mediation is different. It is a settlement conference where the parties attempt to resolve the dispute with the help of a neutral mediator. Unlike arbitration or litigation, the mediator does not impose a result. Any resolution must be agreed upon by the parties.

Construction arbitration and mediation can involve the same issues as litigation: unpaid balances, Change Orders, Breach of Construction Contract, delays, defects, retainage, termination, payment bond claims, and lien-related disputes. The difference is the forum, procedure, and strategy.

Arbitration clauses can be found in prime contracts, subcontracts, AIA forms, supplier agreements, design contracts, and project-specific terms. Before filing a lawsuit or arbitration demand, the parties should review the dispute resolution clause carefully.

Mediation is often useful when the parties need a business resolution, payment plan, release, lien satisfaction, repair scope, or global settlement. It can also help resolve disputes involving Claim of Lien, Payment Bond Claims, Chapter 558, and Delay Claims.

Montesino Law represents clients in construction arbitration, mediation, settlement negotiations, and pre-suit dispute resolution.