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Should you opt for alternative methods of dispute resolution?

On Behalf of | Jul 10, 2022 | Construction Contracts

Construction projects are often much more complex than they appear at surface level. A lot of paperwork and legalities go into it. This means that you need to handle disputes carefully if they occur.

Instead of taking a case directly to court, consider some alternative methods of dispute resolution instead.

Benefits of alternate resolution

FINRA takes a look at both mediation and arbitration. These alternative forms of dispute resolution both offer the same main benefit: if you go with them, then you can avoid going to court. This not only saves valuable time and money, but it also protects your privacy. After all, all cases that go through court end up in public court records that anyone can read.

Mediation is better for situations in which you think you can largely work out the issue on your own but simply need some guidance. A mediator cannot enforce any decisions, but they can provide good suggestions and unique opinions from perspectives no one else has.

Arbitration serves as the most similar to a court case. Arbitrators have power and ability similar to judges. They listen to all sides present their evidence and argument. Based on this, they come to a decision that will legally bind all parties.

Preserving business ties

Seeking out alternative dispute resolution is often the best for all parties involved in a contract. In addition to the aforementioned reasons, it also helps to preserve business ties. In the business world, these ties are always extremely valuable and you should try to protect them, or at least keep from severing or burning them entirely. Alternative resolution methods can help you do exactly that.