Arbitration Still Best Road to Binding Dispute Resolution

Abstract

This article endorses arbitration as a superior dispute resolution method (DRM) for construction disputes. The study takes an interdisciplinary approach with the aim of assisting professionals to develop new construction business strategies to react to recent and ongoing financial difficulties, which increase the importance of reducing legal costs and time spent in dispute resolution procedures. Litigation and arbitration are briefly compared. Expert opinions and academic studies support arbitration. American (federal and state) and Canadian case law is reviewed to advocate arbitration and provide information with respect to conflicts of laws. Treaties and implementing statutes support more universal acceptance of arbitration, although some American state laws pose difficulties, which are noted. Alternative dispute resolution methods (ADRMs), such as mediation, negotiation, and adjudication, are considered options for predispute phases, whereas arbitration is the best all-around binding DRM.