When it comes to construction projects, human error is always a risk. If there is a defect with the materials or a mistake made, it can cost you. Often, defects in construction and design result in lengthy litigation. While going through litigation, you are likely to spend more money and the project may continue to go unfinished.
If your contracting company learns about a defect through a lawsuit, what can you do next? Arbitration may be a suitablesolution.
What is arbitration?
In arbitration, you and the other party meet with an arbitrator. While the independent third party is ultimately responsible for the final decision, you and the other party can negotiate and discuss your sides of the conflict. In arbitration, you work out the procedure without the need for depositions or requests for admission. Arbitration may take less time and be more cost-effective.
Why is arbitration beneficial?
One of the major benefits of arbitration is that it is confidential. Litigation becomes a matter of public record. You can obtain a confidentiality order to ensure that all matters involved in the arbitration remain a private matter. In addition, arbitration remains flexible. For example, if you have a fair compromise that you want to argue in arbitration, the arbitrator may be more likely to consider it. The third party looks for a fair solution to the dispute. When you go to court, there are limited solutions. Arbitrators do not have to stick to relief that the court may offer.
When you go through arbitration, you may have more time and money to focus on finishing the project.