Construction Litigation:

Top-ranked "best Attorneys" for Arbitration & Mediation in Construction Law

 

The construction industry is one that operates on the principle of 'time equals money.' Because of this, it is paramount that creative solutions be created to provide a construction dispute resolution. A stream-lined dispute approach not only boosts efficiency but it cultivates better relationships between contractors and subcontractors. In some instances, mediation can extend the profitable relationship that subcontractors and subcontractors even after a dispute arises. With this in mind, all construction companies will do well to include mediation and arbitration practices within their operations. Here's a closer look at mediation and arbitration in the construction industry.

Understanding the Benefits of Mediation in the Construction Industry

With a settlement rate exceeding 85 percent, it is clear that mediation provides an effective solution to disputes in the construction industry. There's a common myth that arbitration takes as long to carry out as a trial, but in all actuality, the mediation timeline is created by the decisions of the parties involved. The more guidance provided by parties to their mediators, the quicker the disputes can be settled. It is of the utmost importance that disputes be settled in a timely fashion because as they prolong, they will increase in their complexities. Take for example the company that had a lawsuit brought against it on a $30,000,000 construction project. The dispute occurred as a result of a $17,000 correction and lasted for more than four years and ended up costing $1,700,000 plus attorney's fees. 

Construction Law Mediation and Arbitration Cases

The CWS Engineering Group v Birse Construction Ltd [1997] EWCA Civ 2062 case is categorized within construction arbitrations and included both main and sub contractors in JCT form. The first arbitration was between the employer and contractor; however, the employer played no part; the running was made by the sub-contractor. There was no fault found on either the contractor or sub-contractor and monies became due to both entities. The employer went into liquidation; however the subcontractor was able to successfully enforce payment from the contractor. 

Construction disputes take place within all industries. The Beoco Ltd. v Alfa Laval Co Ltd. [1993] ABC.L.R. 12/21 case focuses on a heat exchanger exploding at the Plantiff's works. Although there were no injuries, there was significant damage caused to the equipment. Additionally, there was an even greater economic loss in regards to a loss of production. Arbitration was used to settle a dispute that had already been heard by a judge. A favorable outcome was obtained for all parties involved because all aspects of the case were carefully examined. 

C. Jaye Berger a construction and real estate lawyer in Manhattan says he favors arbitrations; however, they have to be the right kind of cases. According to the New York Times, "Arbitration is often quiet useful in resolving disputes involving contracts between co-op and condominium boards and outside contractors. Litigation is almost always time-consuming and expensive, but arbitration can be cost-effective and usually takes much less time than litigation." 

It is especially beneficial for arbitration to take place when a dispute occurs between parties that can be resolved without any communication taking place between them. The arbitrator assigned to the case is chosen through a selective process in which all parties get to narrow down a list of preferred arbitrators. Their preferences are then sent back to the American Arbitration Association and an arbitrator is chosen based on the preferences of all parties. It's important to keep in mind, however, that arbitrations are usually final, meaning they can't be appealed. Cases that involve large amounts of money will likely want to avoid arbitrations; however, ones involving smaller amounts of money can definitely benefit. 

When either an arbitration or mediation takes place, the outcomes are to be kept between the involved parties only. The only way the outcomes can be shared is if written consent has been obtained from all parties involved. No matter the dispute that arises within your construction company, it is imperative that you carefully consider the benefits of arbitration and mediation. 

Settle the Dispute Group's construction law arbitrators and arbitration group can help you resolve real estate disputes, commercial building contracts, and binding matters related to construction and commercial development.  

Construction Law: Attorneys for Mediation and Arbitration (ADR)   

Construction Law: Attorneys for Mediation and Arbitration (ADR)

 

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