Dispute Resolution Methods: What Recourse Do You Have to Protect Your Interests?

Every construction contract has a dispute resolution provision. But did you really understand the options, how they differ, and what's best for your company?

Mediation

A non-binding process where a neutral third party helps the parties negotiate a settlement. Fast, cheap, confidential — but no decision is forced.

Arbitration

A binding process where a neutral arbitrator (or panel) decides the dispute outside of court. Faster than litigation and confidential, but discovery is limited and appeal rights are narrow.

Litigation

The default if the contract is silent. Public, slow, expensive, with full discovery and appeal rights. Sometimes the right answer when you need a precedent or broad subpoena power.

Step clauses

Many contracts require mediation before arbitration, or arbitration before litigation. Read the order of operations carefully — skipping a step can get your claim dismissed.

Forum and venue

Where the dispute is heard matters. A clause requiring arbitration in another state can effectively kill small claims by making them uneconomic to pursue.