Should I Resolve My Dispute By Arbitration? Part 1
In a perfect world, construction firms could go about their business as usual without having to be worried about contract disputes, payment disputes, or defective work or product claims. However, these are all common issues that construction firms face, and resolving these issues isn’t always as easy as perfecting a lien or sending a strongly worded demand letter. In some cases, litigation or alternative dispute resolution (ADR) services are the only viable options at a construction firm’s disposal.
In this two-part article, the construction attorneys at Cotney Attorneys & Consultants will discuss four of the benefits of choosing an arbitration process instead of pursuing a lawsuit. Remember, to greatly reduce your chances of dealing with a lengthy construction dispute, consult a Nashville construction law attorney for contract review services. Our attorneys can ensure that your contract features an arbitration clause in it.
1) Resolving Disputes in a Cost-Effective Manner
The main reason why construction firms and owners elect to pursue arbitration instead of litigation is to save money. Because legal fees can add up significantly with a lengthy lawsuit, the arbitration process is much quicker, taking months instead of years during the pre-arbitration proceedings and a few days instead of several weeks during the arbitration proceedings. Although you do have to pay an arbitrator to moderate the proceedings, you save significantly in the end because you are paying for legal services during a shorter window of time. Arbitration is perfect for any construction firm that wants to manage their legal spend and keep cash flow freed up for projects.
2) Resolving Disputes Quickly
Closely aligned with saving money for construction firms is saving time. As we discussed above, construction firms will spend significantly less in legal expenses when they forego a lawsuit for arbitration. With less time entangled in a dispute, construction firms can focus on proactive tasks to improve their bottom line, like securing more projects, hiring more workers, and growing their business. A reduced amount of time dealing with a dispute also lowers stress levels and, hopefully, leads to a quicker and more amicable resolution to the issue.
If you are interested in learning more about the benefits a construction firm can take advantage of when they pursue arbitration instead of litigation, please read the second part of this article.
If you would like to speak with an attorney from our Nashville construction law firm, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.