Legal disputes on construction projects aren’t exactly rare, but they do tend to put everything on hold. Work stops. Payments stall. Relationships strain.
In these moments, figuring out a path forward becomes the main focus. Many contractors and project owners in Florida choose arbitration (or have arbitration agreements written into their contracts) to avoid the slow pace and public nature of litigation. Arbitration may be the most practical option available if you’re staring down a disagreement over project delays, payment issues, or work quality.
When is Arbitration Necessary?
In many construction jobs, contracts dictate the dispute resolution process before anything ever goes wrong. Arbitration clauses are common, and they carry weight. If your agreement includes one, you’re typically required to follow that route once a dispute hits a breaking point.
Beyond what’s written into the contract, arbitration becomes necessary when two sides reach an impasse and need a third party to make a final decision. These disputes often involve matters like missed deadlines, nonpayment, defective work, or disagreements over what the contract requires. If talks stall and one party initiates arbitration, the process unfolds under the rules laid out in the agreement or the governing arbitration body. It’s important to know that these decisions aren’t suggestions but binding and enforceable.
How Does Arbitration Differ From Mediation?
Arbitration and mediation both keep you out of court, but they work differently. Mediation is about finding common ground with help from a neutral mediator whose findings are not legally binding. The goal is to reach a deal both sides can live with. Arbitration, however, hands that decision to a neutral party who listens to both sides and then makes a final ruling. The decision isn’t optional in arbitration; it’s legally binding.
What Should I Expect During Construction Arbitration?
Once someone files to begin arbitration, the first major step is figuring out who will decide the outcome. Some cases have one arbitrator, others have a panel of three. Ideally, all parties agree on the selection, but if not, the contract or the arbitration provider has rules in place for choosing one.
After the arbitrator is selected, a preliminary meeting will outline what’s ahead. Timelines are set, document sharing deadlines are established, and it’s decided whether any additional parties need to be brought in. Compared to court, the discovery process here is usually trimmed down. It often involves just a document exchange and, occasionally, a few depositions.
The actual hearing usually takes place in a private office or conference room. It doesn’t follow strict courtroom formalities, but make no mistake, it is a legal proceeding. Both sides present their case, call witnesses, and submit evidence. The arbitrator manages the process and ultimately decides who prevails. The rules may be more flexible than in a courtroom, but the result carries the same legal effect. Once the hearing wraps, the arbitrator issues a written decision that can be enforced in court, just like a judgment.
Having the Right Representation in Arbitration MattersThe outcome of arbitration often hinges on the ability to present the right evidence clearly and persuasively. Having a legal team that understands Florida construction law and how arbitration panels operate can make the difference between a fair result and a costly one. Florida Construction Law Group helps contractors, developers, and owners prepare for arbitration with confidence. Contact our team today to get the legal solutions you need to move your project forward.
