Arbitration in construction disputes is a private process where owners, contractors, subcontractors, designers or suppliers present claims to one or more neutral arbitrators instead of taking the dispute through court. The arbitrator reviews evidence, hears testimony and issues a decision that is usually binding.

Construction arbitration is common because project disputes are technical, document-heavy and time-sensitive. Claims may involve schedule delays, disputed change orders, defective work, differing site conditions, payment, termination, indemnity, surety issues or professional liability.

Arbitration can be faster and more specialized than litigation, but speed is not guaranteed. Poor contract language, broad discovery, weak records and unclear damages can make arbitration expensive.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.