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Civil Litigation

Arbitration in Construction Disputes

The project is stalled over unpaid change orders or alleged defects, and the contract says disputes go to arbitration. Before anyone files a demand, the contract's own sequence of steps and the clock on liens and bonds need attention.

Reviewed

01 GUIDE

Arbitration in Construction Disputes: what usually happens

Steps the contract may require first

Construction contracts frequently set out a sequence that has to be followed before arbitration. That sequence often starts with written notice of a claim, sometimes includes a decision by the architect or another designated person, and commonly requires mediation. Skipping a required step can delay the arbitration or hand the other side a procedural argument. Industry form contracts often incorporate an arbitration provider's construction rules, which include procedures for large and complex cases. Subcontracts may bind subcontractors to the outcome of disputes between the owner and the general contractor, so every tier of the contract needs reading.

Liens, bonds, and the courthouse

A mechanic's lien in New York is enforced through a court action, and filing an arbitration does not by itself stop the lien's deadlines from running. Courts often allow the lien case to be paused while the arbitration decides the underlying amount, with the result then applied to the lien. Claims against payment or performance bonds carry their own notice and filing requirements, and whether a surety is bound by the arbitration clause depends on the bond's wording. Parties outside the arbitration agreement, such as some suppliers or design professionals, may end up in separate proceedings, which can produce inconsistent results. Mapping who is bound by which clause early helps avoid fighting the same issue twice.

Presenting a technical case

Arbitrators chosen for construction matters often have industry backgrounds, which affects how technical issues should be presented. Schedules, cost reports, daily logs, change orders, and photographs need to be organized so that delay and cost claims can be traced from cause to effect. Retained scheduling and cost consultants often prepare analyses, and the panel will compare competing methods. We review the contract's dispute provisions, identify deadlines, and talk with you about arbitrator selection and how to keep costs proportionate to what is at stake. Where it makes sense, we explore whether mediation can resolve parts of the dispute before the hearing.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

05 HOW WE WORK

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06 OFFICES

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Attorney Advertising. This page is general information about arbitration in construction disputes and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.