Top 6 Construction Arbitration FAQs You Should Know

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Disputes and delays are an inevitable part of the construction industry and give rise to each other. Although the construction stakeholders develop a set of rules, policies, and contract clauses to deal with such issues smoothly, the situation can go awry within a matter of a few moments. In that situation, instead of presenting the case to legal authorities, it is better to consult the arbitrators.

What is Construction Arbitration?

Construction arbitration is quite common across the globe as every other mega construction project needs arbitration at one or the other stage. Construction arbitration means pleading the case of conflict or dispute to a neutral third party to resolve the issue without taking it to court. The concept gives rise to numerous concerns and queries on behalf of construction stakeholders, so they do not suffer more.

Dig deeper into this article to explore frequently asked questions about construction arbitration and fix your confusion.

Top 6 Construction Arbitration FAQs You Should Know

The construction industry is progressing at a fast pace. New projects are starting every other day. On the other hand, several projects are trapped in disputes. Construction arbitration is a suitable method of resolving disputes timely. However, concerns and queries surrounding the topic limit the willingness of the stakeholders to give it a go.

Here are some of the frequently asked questions about construction arbitration that you should know about to get your issues resolved smoothly.

1. Which is more effective out of arbitration and litigation?

The basic frequently asked question about construction arbitration is that if it is more effective than litigation or not. The answer is that the two processes are equally effective. Arbitration involves referring a neutral third party for the solution of the issue, while litigation works through knocking on the door of courts. Both are equally effective, but the latter takes more time.

2. Is arbitration costly than litigation?

Another frequently asked question about construction arbitration is that if it is costly than litigation or not. Litigation can be a bit costly in terms that the parties may have to pay the court fees, hire an attorney and fulfill other legal requirements. On the other hand, arbitration is a bit cost-effective as it does not involve an extra cost of court and legal proceedings.

3. Why should disputes be resolved by arbitration?

Another common query of the construction stakeholders is that why they should use arbitration to resolve their disputes. The answer is that arbitration is not only cost-effective but saves time too. If the stakeholders go for litigation, they will have to manage extra expenses like court fees and will have to wait for their hearing date. In case of relying on the arbitrator, they can ensure smooth and timely resolution of the matter without spending extra cost.

4. Who has the supreme authority in arbitration?

In the case of construction arbitration, the neutral, third-party arbitrator selected by the consent of all the stakeholders has the supreme authority in arbitration. The arbitrator reviews the claims and concerns of all the involved parties, explore the arguments and presented evidence before finally giving a statement on the matter. He has the supreme authority, and the decision is legally acceptable.

5. Is arbitration enforceable?

In most of cases, arbitration is enforceable. The decision of the arbitrators holds the standing of the legal decision. However, it can be challenged if it contradicts with the contract clauses. Most of the construction stakeholders include the clause in the contract if the dispute will be presented in front of an arbitrator, court or experts involved in the project. If the arbitrator is not mentioned in the contractor, the arbitration may not be enforceable.

6. What is the role of quantum experts in arbitration?

This is one of the main concerns of most of the construction stakeholders, as they do not know if the quantum experts work in their favor or not. At times, they serve the role of arbitrator. While at other times, they provide the necessary support and evidence related to the project from a neutral perspective to resolve the issue on time. You can also hire and include quantum experts in your construction project and resolve your conflicts in the light of the evidence.

Go for arbitration to resolve your disputes in your construction project!

If you had any concerns and queries about construction arbitration, the above discussed frequently asked question would have cleared them. Now that you are aware of the role, responsibilities and standing of the arbitrators, you can easily trust them for the resolution of your construction disputes. However, another easier route is to hire quantum experts and let them provide support and guidance through evidence in the critical scenarios. So, consult the professionals and get them on board to resolve all your major, minor disputes without wasting extra time.

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