Companies in the construction industry face complex projects and complex disputes. It is important to understand the ways to address disputes when they arise. Court is not the only option.
Alternative dispute resolution
Do not underestimate the importance of direct communication before a dispute is blown out of proportion. An face-to-face meeting with all the parties involved in the dispute is an important first step. The parties can learn a lot from each other and may be able to agree on a path forward.
If discussions alone are not enough to resolve the disagreement, mediation may be a cost-effective next step. Mediation requires less structure or rigidity than arbitration or court action. Mediators do not have the power to hand down legally binding decisions, so it is largely up to the groups in question to figure out the solution to their dispute with the helping hand and guidance of the mediator.
Arbitration is often an agreed-upon alternative to court. Arbitrators have a similar level of power to judges, but they can make mistakes that can not be overturned. They hand down a decision that all parties must legally follow, which they do after listening to everyone present their own arguments and evidence. Arbitration can also be more expensive than court. As soon as you become aware of a dispute, speak with your attorney about whether arbitration is a suitable alternative to court.
Why avoid litigation?
Sometimes, the absolute structure of a court case is necessary, such as when all the necessary parties do not agree to mediation or arbitration.
However, litigation takes a long time and costs a lot of money. On top of that, all information in a public trial is available for the public to look into, meaning private or proprietary information will be on display.
Thus, in order to avoid these issues and keep business ties intact, many companies choose to opt for alternative litigation methods.
An experienced construction litigator can help you examine the options when a dispute arises.