When construction disputes arise, it’s important to understand and consider all dispute resolution options on the table. That includes both mediation and arbitration, otherwise known as alternative dispute resolution (ADR), as options to resolve disputes with integrity and allow the important work you’re doing to move forward.

Both of these options can help avoid the costs, delays, and publicity of traditional litigation. But which is the better option for your situation? Understanding the differences can help you make the right choice.

Retaining Privacy and Control Through Construction Mediation

Mediation is a voluntary process where a neutral third party, the mediator, helps the disputing parties find a mutually agreeable solution. The mediator doesn’t impose a decision but facilitates communication to help both sides reach a settlement.

In construction disputes, mediation is often preferred when both parties want to maintain their relationship, keep things confidential, and control costs. The process is informal and non-binding, allowing parties to walk away if they can’t reach an agreement. This flexibility is particularly valuable in construction cases, where ongoing business relationships are often crucial.

The mediation process starts when both parties agree to hire a mediator and set a hearing date. They may provide documentation or evidence, but it’s not required. The mediator guides the negotiation, helping the parties explore solutions. If they reach an agreement, the mediator helps draft the settlement terms, which can then be formalized into a legally binding contract.

Mediation is typically faster, less formal, and less expensive than arbitration or litigation, and it keeps the details of the dispute and settlement confidential. For these reasons, mediation is often the better choice when both parties are open to negotiation and want to stay in control of the outcome.

Ensuring an End to Your Dispute Through Construction Arbitration

Arbitration is more formal and involves presenting the dispute to an arbitrator or panel of arbitrators, who make a binding decision. While arbitration shares some similarities with litigation—like presenting evidence and questioning witnesses—it’s usually faster and less costly than going to court.

One advantage of arbitration in construction disputes is that you can select an arbitrator with specific technical expertise, which can be crucial in complex cases requiring specialized knowledge.

The arbitration process begins with both parties agreeing to arbitrate. During the hearing, each side presents its case, evidence, and witnesses. After reviewing everything, the arbitrator issues a binding decision, enforceable in court, with very limited opportunities for appeal.

Arbitration is often the better option when negotiations have stalled, and a final, enforceable decision is needed. The finality of an arbitrator’s decision can bring closure to a long, drawn-out dispute.

Choosing Between Mediation and Arbitration

The choice between mediation and arbitration depends on your situation. Mediation is generally best when both parties want to keep things private, affordable, and within their control. Arbitration is better when months of negotiations have failed, and you need a decisive, enforceable outcome.

If you’re dealing with a construction dispute and need guidance, contact Florida Construction Law Group. Our experienced construction law attorneys can help you resolve your dispute efficiently and effectively while also ensuring contracts are well-drafted and strong enough to hold up to legal challenges.