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Construction arbitration can be more advantageous than litigation

| Jul 14, 2021 | Construction Law

There are many different types of construction projects occurring in Florida at any given time. These construction projects can vary greatly in size and scope ranging from high rises and office buildings to home repair projects. While they vary in size and complexity, there is one thing that they all have in common and that is that there is an expectation that they will be done correctly and last for a long period of time.

This does not always occur though. Some projects involve many different aspects and many subcontractors completing various aspects of the project. As a result there are many opportunities for mistakes to occur that cause major problems for the overall project. Construction defects can be very costly and also lead to legal disputes between the contractors and the owners of the project.

When construction disputes arise, there are a couple of options the parties have to resolve the dispute if they are unable to reach agreements on their own. One is litigation and the other is arbitration. Both involve a third-party neutral issuing a ruling, but there are advantages to using arbitration instead of litigation.

Benefits of arbitration over litigation

One advantage is that the parties control the process and it is a more flexible process for the parties. Arbitration is run based upon the terms agreed to by the parties and not dictated by a judge or court procedure. The arbitration process is also much shorter. From start to finish the process usually takes around seven months. In contrast the average court case from beginning to trial is approximately 23 months. Due to taking less time and other factors only present in trial, arbitration is also usually less costly than going to trial. In addition, arbitration is generally confidential, so the public will not know the amount of the awards or the facts of who is at fault or not at fault.

From time to time there will be mistakes made during construction projects in Florida. Some of the mistakes can be remedied relatively quickly, but some will result in legal disputes about who is responsible. The construction companies may find arbitration to be preferable to litigation and may want to consider putting an arbitration clauses in contracts. Consulting with experience attorneys may be beneficial to ensure this occurs.

 

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