ADR: Save Time, Money, and Stress

Not every construction dispute needs to end up in a courtroom with a judge presiding over a trial. In fact, only a minority of cases reach this point, as many can be resolved using alternative means. The general preference for disputing parties and the court system is to resolve matters amicably through negotiation or mediation, with arbitration as another commonly used option. These methods, known as alternative dispute resolution (ADR), can save considerable time, expense, energy, and stress. Generally, it is advisable to give ADR methods every chance before progressing to a trial. ADR typically involves negotiation or collaboration between lawyers, mediators, or arbitrators.

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Complex Dispute Resolution

Business litigation involves resolving intricate disputes between commercial entities, often requiring specialized legal expertise to navigate.

Early Legal Intervention

Securing legal counsel early can prevent disputes from escalating, saving time and costs by addressing issues before they reach the courtroom.

Alternative Dispute Methods

Using mediation and arbitration helps resolve conflicts privately and efficiently, avoiding the expense and public exposure of a trial.

Efficient conflict resolution brings numerous advantages that are crucial for the success and stability of any business. By addressing disputes quickly and effectively, businesses can reduce financial strain and avoid prolonged disruptions that hamper operations and productivity. It also helps preserve valuable business relationships, fostering a more cooperative and less adversarial atmosphere. Additionally, resolving conflicts efficiently protects a company’s reputation by keeping disputes out of the public eye, which can be both costly and damaging. Ultimately, efficient conflict resolution allows businesses to focus on growth and future success, free from the distractions of ongoing disputes.

Key Aspects of ADR in Construction Litigation

Discover how alternative dispute resolution can save you time and money in construction disputes. Learn about the benefits of mediation and arbitration for resolving construction conflicts efficiently and privately.

What is Mediation?

Mediation is a structured yet informal process where a neutral third person, the mediator, facilitates the resolution of a dispute between parties. The mediator does not make decisions but helps the parties reach a mutually acceptable agreement, which remains private and can be legally binding if formalized.
What is Arbitration?

Arbitration is similar to a trial but conducted privately without a jury. A neutral arbitrator hears both sides, considers the facts and arguments, and makes a binding decision. Arbitration can be voluntary or mandatory and is generally quicker and less expensive than a court trial.
Mediation vs. Arbitration: Which is Best?
There are pros and cons of both mediation and arbitration. These are summarized below.

Mediation

Main pros
- Quicker and less expensive than going through the courts
- Cooperative rather than adversarial
- Less formal than a court trial or arbitration
- Remains private rather than a matter of public record
- Flexible when scheduling sessions
- Creative solutions to problems possible
- Direct discussions facilitated between disputed parties
- No one “wins” or “loses” – mutually beneficial resolutions are sought
Main cons
- Not appropriate where there is a reticence to discuss matters openly
- Not appropriate where one or both parties are entrenched in their positions and not open to negotiation
- Possible lack of qualifications for the selected mediator (check credentials before hiring)
- The agreement may not be legally binding unless steps are taken to make it so
Arbitration

Main pros
- Quicker and less expensive than going through the courts
- Disputing parties can choose the arbitrator (unlike with a judge or a jury in court)
- Remains private rather than a matter of public record
- Less formal and more relaxed
Main cons
- After binding arbitration, you cannot appeal (unlike with a court case)
- Potential lack of transparency because the ruling is not made public
- Rising costs compared to mediation
- There may still be a “winner” and a “loser” (unlike with mediation)

Contract Disputes Resolution

We represent various stakeholders in resolving contract disputes through ADR, including owners, contractors, and suppliers, ensuring that issues are settled amicably and effectively. Having a well drafted dispute resolution clause in your contract is key to aiding in this effort.
Resolving Delay and Extra Work Disputes

ADR is used to manage disputes over project delays and additional work claims, helping parties find acceptable solutions without disrupting project timelines.
How Does ADR Save Time and Money?

ADR methods are designed to resolve disputes efficiently, avoiding the lengthy and costly process of a court trial. Mediation and arbitration sessions are typically shorter, and the overall process is less adversarial.