Arbitration clause
The contract may specify who arbitrates, the rules, location and prerequisites.
Arbitration servicesConstruction Law Insights / Private dispute resolution
How Does Construction Arbitration Work?
An accessible guide to construction arbitration clauses, hearings and outcomes.
The Short Answer
What you should know first.
Construction arbitration is a private dispute-resolution process in which a neutral arbitrator decides a dispute under agreed rules and applicable law. Arbitration may be required by the construction contract, and the ability to appeal an award is often limited.
Key Considerations
Important factors to evaluate.
The relevant contract terms, records and law help determine how these questions apply to a particular construction project.
Starting the claim
A party typically submits a demand describing the dispute and requested relief under governing procedures.
Contract requirementsEvidence and hearing
The process may include document exchange, witnesses, experts and a formal or streamlined hearing.
Litigation comparisonDecision and enforcement
An arbitrator may issue a binding award; challenges and enforcement follow specific legal rules.
Compare approachesA Practical Starting Point
Organize the facts before deciding on next steps.
Construction disputes can involve short notice periods and overlapping obligations. A clear set of records helps make any review more productive.
Locate the dispute-resolution clause in the contract.
Check any notice, negotiation or mediation prerequisites.
Organize project evidence and claimed amounts.
Review arbitration rules, timelines and available remedies.
Frequently Asked Questions
Common follow-up questions.
Is arbitration always faster than court?
Not necessarily. Timing and cost depend on the dispute, rules and proceedings.
Does arbitration involve a judge?
An arbitrator, rather than a court judge, typically decides the merits.
Can parties appeal an arbitration award?
Review is often limited, although exact rules depend on the governing law and agreement.
Need guidance on a construction matter?
Each project and agreement is different. Contact AW Construction Law to discuss the circumstances, relevant documents and possible next steps.