Kushnick | Pallaci PLLC Attorney At Law
Resolve Your Construction Arbitration Issues with Experienced Attorneys
Understand the Pros and Cons of Arbitration in the Construction Industry
Many building and construction contracts that are written today include an “arbitration clause.” This clause is used to anticipate any disputes that may arise and outlines that both sides must submit their dispute for arbitration before an organization such as the American Arbitration Association (AAA) or JAMS. It is a common assumption that construction arbitration is a more cost-effective and less time-consuming option than a trial, but unfortunately, this is not always the case. Each case is different and in some instances it is better to arbitrate than to litigate but there are also cases that are better to litigate than arbitrate. Unfortunately you typically have to make a decision on arbitration at the time you draft your contract, not once the project has already begun and the particulars of the disputed issues are known.
At the law firm of Kushnick Pallaci PLLC, we understand the rules and procedures of the AAA and Arbitration and handle construction arbitration matters for clients. We work with clients in prosecuting and defending arbitrations, but we also advise our clients during contract formation on the advantages and disadvantages of including arbitration provisions in those contracts.
If you are dealing with construction arbitration proceedings, or are forming a construction contract and have questions about construction arbitration proceedings, contact us at Kushnick Pallaci PLLC, to schedule a free initial consultation.
What is Arbitration?
Construction arbitration is a form of alternative dispute resolution (ADR) specifically designed to resolve conflicts and disputes that arise in the construction industry. It offers parties involved in construction projects a fair and efficient method to settle their differences outside of the traditional court system.
In construction arbitration, the disputing parties agree to submit their disagreement to a neutral third party, known as an arbitrator or an arbitration panel, who acts as a private judge. The arbitrator is typically chosen for their expertise in construction law and industry practices, ensuring that they possess the necessary knowledge to understand the complexities of the construction project at hand.
Unlike litigation, which involves a public court process and potentially lengthy delays, construction arbitration provides a more streamlined and confidential resolution mechanism. The arbitrator reviews the evidence, listens to the arguments of both parties, and renders a binding decision called an arbitral award. This award is enforceable by law, providing finality to the dispute.
Construction arbitration is widely used in international and domestic construction contracts, as it provides a specialized forum that can address the unique challenges and intricacies of the construction industry. Its emphasis on expertise, efficiency, and enforceability makes it an attractive option for parties seeking a fair and expedient resolution to their construction-related disputes.
Reasons to Avoid Arbitration
It is commonly believed by many in the construction industry that mediation or arbitration is a faster, cheaper and more preferable option than litigation in construction defects or construction law disputes. Unfortunately, without focused and experienced counsel, the arbitration process can be unpredictable, time consuming and expensive.
Arbitration may be time consuming and expensive for those who are unfamiliar with the process. Avoiding arbitration may be the best approach in your case, but if arbitration is unavoidable, you will need an experienced lawyer to protect your rights. Our firm will develop a strategy that is right for you and will guide you through the process so that it is as efficient and effective as possible.
Contact us at Kushnick Pallaci PLLC at 631-752-7100 or toll free at 1-888 – 587 – 4529 to schedule a free initial consultation.
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Kushnick | Pallaci PLLC Attorney At Law
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