Construction Law

How To Draft A Successful Arbitration Clause Part 2

In the second part of this three-part article, we will continue to discuss the advantages of working with Lakeland construction lawyers to draft a successful arbitration clause for a construction contract. To view the rest of this article, please visit Part 1 and Part 3.

Establish a Difference Between Complex and Small Disputes

An arbitration clause can include separate sets of rules and procedures (i.e., the number of arbitrators and allowed discovery procedures) depending on the size and complexity of the dispute. For example, if the dispute is a small one, the arbitration clause might state that all parties must waive the right to any hearing before the arbitrator, or that they must submit the dispute to the arbitrator in writing with limitations for each party’s argument. On the other hand, if a hearing is allowed in more complex disputes, the arbitration clause has the ability to limit the time in which each party can present their case to the arbitrator.

Be Specific With How You Choose the Arbitrator

One of the biggest benefits of arbitration is the advantage of having your dispute resolved by an arbitrator that is knowledgeable of the construction industry. A well constructed arbitration clause can limit the number of arbitrators, and describe the process of how the arbitrator will be chosen.

Provide for Consecutive Hearing Days

In most cases, arbitration can grow over a long duration when hearings are not scheduled to start and stop on consecutive days. With each break in between the arbitration process, the opposing party has the chance to find more witnesses, more documents, or come up with more questions. This can result in a longer overall duration, which in turn will result in higher costs. If the arbitration clause states that the arbitration hearing will be scheduled to start and stop on consecutive days, this can control the duration and prevent the opposing party from building up their case.

To speak with an experienced Lakeland construction lawyer from Cotney Attorneys & Consultants, please contact our office at 813.579.3278 or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.