Construction Contract Arbitration Clauses
In a growing number of areas, including securities, real estate and construction, contracts contain a clause requiring any dispute to be resolved in arbitration and litigation in court is prohibited.
Do you sign the contract? Demand a revision? We recommend you talk to a lawyer.
The most common dispute resolution service designated in construction contracts has been the American Arbitration Association, and their rules apply in the arbitration. While we are not aware of bias toward any side or parties in their decisions, there may be reasons to choose an alternative. The cost has risen, the outcome may prohibit appeal.
Going to court, of course, has several disadvantages: time, expense, outcomes that are hard to predict, and win-or-lose outcomes. The courts’ procedures, judges and dockets change as well, and we are constantly aware of these factors.
There are other construction dispute resolution services, such as the Judicial Arbitration and Mediation Service, “JAMS.” They have different rules from AAA, and we can discuss them with you. They offer a “project neutral” who manages the project.
Our lawyers are dedicated to the best outcome for you. We will not encourage costly litigation unless you agree that it is the most likely course for the best outcome. We are a small firm where you will have a thorough review of the matter, at modest cost, and all the involvement and contact with us that you choose.
Some considerations for your contract and choice regarding arbitration:
- Can your dispute be resolved before the project is complete?
- Can it be resolved in a way that prevents additional disputes?
- Are possible outcomes predictable?
- Do you have recourse to appeal an arbitration decision?
We are educators and authorities on construction law.
Contact us online or by telephone at 704-841-8772 to speak with an experienced construction lawyer.

