When a Florida construction project stalls because of billing or workmanship concerns, the contract may require the parties to resolve their disagreement through arbitration instead of court. Understanding the range of claims covered by that clause can help you prepare for what follows.
Contracts and payments
Payment disputes often involve outstanding invoices, contested change orders or withheld retainage. A broad arbitration clause may also cover claims that a contractor abandoned the project or exceeded the agreed scope.
The agreement affects who must participate, not just which cases go to arbitration. It usually binds those who signed it, but certain contract rules can also apply to others involved in the project.
Delays and disruptions
When a project misses a key deadline, the parties may offer different explanations for the setback. An arbitrator can review the schedule, daily reports and other records for evidence of work stoppages, site-access problems, coordination failures or other interference.
If several events contributed to the delay, the evidence can show how much responsibility each participant bears. Depending on the contract, an award may include compensation for lost productivity when crews work out of sequence, along with overhead that continues while the job remains unfinished.
Defects and warranties
Defect claims may involve poor workmanship, unsuitable materials or design errors by an architect or engineer. The resulting problems can range from water intrusion to structural damage.
Even when a warranty calls for repairs, the arbitrator may still need to decide what caused the problem and who is responsible under the contract. An indemnity clause can require another participant to cover some of that expense, while any insurance payment depends on the terms of the policy.
Limits and enforcement
Arbitration does not replace every court action that a dispute may need. For example, enforcing a construction lien requires a lawsuit, and many defect disputes must follow notice and repair rules before arbitration begins.
Either side can ask a court to confirm an award, which turns it into an enforceable judgment. A motion to vacate generally must be filed within 90 days after notice. It must also rely on a narrow statutory ground, such as evident partiality or an arbitrator who exceeded the authority granted by the agreement.