Dispute resolution clauses are common in contracts between owners, general contractors and subcontractors. For quite some time, the general rule of the construction industry has been that an arbitration proceeding is the preferred method of resolving disputes as opposed to jury trials. There is also the general belief maintained by many in our industry that arbitration is less expensive, less time consuming, and quicker to achieve a resolution. For many, these "well known" beliefs have been put to the test, and have resulted in a reevaluation of not only those beliefs but of the dispute resolution procedures in the contract. A careful review of alternatives to the standard dispute resolution clause selecting arbitration is a good practice.
The full article first appeared in the May 2018 issue of Houston Construction News.