Many construction companies resort to alternative dispute resolution methods to settle disputes without litigation. Using alternative dispute resolution helps construction companies and contractors to avoid the hostility that litigation can bring. The aim of the dispute resolution process is to resolve a dispute as efficiently and effectively as possible. It is done in a manner that takes into account both the nature of the dispute and the goals, needs, and interests of the parties. Different forms of dispute resolution process are: negotiation, mediation and arbitration. But which method is ideal depends on various factors. Here we share tips to choose the ideal alternative dispute resolution method for resolving construction dispute:
- What is the end-goal?
Before you choose any alternative dispute resolution method, it is important for you to understand what you would like to achieve as a resolution. If you and the other party want a formal written enforceable decision, in that case adjudication is ideal. However, if the parties want less formal resolution, consensual processes such as negotiation or mediation are better.
- At what stage is the dispute?
Alternative dispute resolution can help in ensuring swift and amicable dispute resolution, the procedural status of the dispute is an important factor to consider. If the litigation has already commenced, going back to alternative dispute resolution methods may not be feasible. However, if the dispute is in the early stages, negotiation and mediation can help both parties to take a collaborative approach and resolve the dispute amicably.
- How much control you want to have on outcome
One of the reasons why construction companies go for alternative dispute resolution is to give them a certain degree of control over the outcome of the dispute. If you wish to retain control over the outcome of the dispute, negotiation and mediation are ideal as the decision is non-binding. Both parties have the right to accept or reject proposed options. On the other hand, arbitration agreements can be legally binding if the case is disputed through binding arbitration.
- Do you want a flexible process?
Negotiation and mediation are more flexible and less formal than arbitration. Meditation meetings can also be attended without attorneys, making it less time consuming and cost-effective.
- Do you want to preserve professional relationships with the other party?
A decision to take the other party will undoubtedly damage the professional relationship that you share with them. If you wish to preserve the ongoing relationship, mediation and negotiation are better choices.
How can Contract Square Pvt Ltd help your business with the dispute resolution process?
We have dispute resolution experts on board. Armed with comprehensive knowledge and vast experience, they can carry out negotiations for your construction business to ensure the financial viability of your project. from identifying the root cause of claims to building concrete evidence, from advising and assisting in mediation and arbitration proceedings, we are a one-stop destination for all your contract management needs in the dispute resolution process.
To know how we can help your construction company, call us at 9903023893 or mail us at enquiries@contractsquare.co
