Common resolution methods for construction disputes

| Mar 28, 2021 | Business Disputes |

Pennsylvania has many construction projects underway throughout the year. As with most types of business, there are always disputes that arise between companies and clients. Knowing how to handle a potential dispute can help you to save time and money.

Mediation

One definite clause to include in any construction contract deals with mediation. This makes it mandatory to undergo mediation with the assistance of a neutral third party before resorting to construction litigation. Mediation isn’t legally binding, but it does allow both parties to discuss the dispute and possibly come up with a solution outside of court.

Expert determination

The expert determination clause is another way to avoid court proceedings. In the event that both parties are in a dispute, a specialist would be brought in to perform a valuation of what the dispute is over. Both parties will receive the expert determination and can agree to utilize it to reach a resolution.

Arbitration

To avoid the high costs of courtroom proceedings, some parties may opt for adding an arbitration clause to their construction contracts. This requires that both parties enter into legally binding arbitration to resolve their dispute. An expert on the subject will be brought in to review the facts and the documents surrounding the contract dispute. They will work with both parties to come to an agreeable solution. If both parties are unable to agree, the arbitrator will make a decision on which party is right.

Construction disputes can be both costly and time-consuming when not handled outside of the courtroom. Alternatives like arbitration, mediation, and expert determination can help both parties reach an agreeable solution. As always, it’s important to consider have legal assistance regardless of the method that is used.