Pros And Cons Of Arbitration

Decent Essays
Many in the industry will agree when we say that the contracts in the construction industry have become more and more complex. Many owners will attempt to put extensive contracts in place that leave all responsibility on the contractor for the job. In response, contractors provide pages and pages of classifications, clarifications, exceptcions and alterations to terms laid out in the original contract. Over the last two decades, it has become difficult for owners and contractors. They must rely more than ever on legal maneuvering in order to minimize risks that come with the situation.

In addition to the more complex and lengthy construction contracts, there are drastically increased numbers of opportunities for contractual disputes to disrupt the process. Many construction contracts in the modern workforce already include Alternative Dispute Resolution (ADR). This is a
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It’s also not always the best answer – or the cheapest. In fact, arbitration is not always less expensive than litigation. Arbitration also comes with a few drawbacks. First, it does NOT eliminate discovery. This is the extensive and costly process through which disputants make documentation regarding the issue available. Second, arbitration comes with no provision to appeal what parties involved may feel is a “bad decision.”

Some turn away from arbitration for these reasons and instead turn to mediation. This process allows the disputants to maintain control of the process, the costs associated with the issue, and the final outcome (rather than the lawyers as in arbitration). Mediation, as an alternative dispute resolution or ADR, is increasing in popularity for these reasons and because it shows results.

If you need to discuss the benefits of arbitration or mediation as an alternative dispute resolution, please get in touch with the experienced southern California real estate lawyers at The Law Office of Ernest F.

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