How Well Do You Know Construction Dispute Resolution Methods?

Arbitration can be faster, less expensive, and more private than going to court.

Some advantages of using arbitration include being faster, less expensive, and more private than going to court.

It is a faster process

False

Arbitration is the referral of a dispute to an independent arbitrator for a binding decision, governed by the contract between the parties. It is often used as an alternative to litigation because it can be faster, less expensive, and more private than going to court.

False

False

Arbitration can be faster, less expensive, and more private than going to court. It can also be flexible and tailored to the specific needs of the parties involved.

Litigation in construction involves resolving disputes through the court system, which can be a lengthy and expensive process but can provide a final and binding decision. Its advantages and disadvantages compared to other dispute resolution techniques depend on the specific circumstances of each case.

False

True

To make a binding decision

The arbitrator is a neutral third party who makes a final and binding decision on the dispute.

Arbitration is typically governed by the contract between the parties, which may include specific rules and procedures for the arbitration process.

The contract between the parties typically governs arbitration in construction disputes and may include specific rules and procedures for the arbitration process.

False

The arbitrator's decision is usually final and binding, meaning that the parties must abide by the decision, and there is limited opportunity for appeal.

True

False

Litigation involves resolving disputes through the court system, while non-trial evaluative techniques involve a neutral third party evaluating the dispute and offering an opinion or recommendation.

Litigation involves resolving disputes through the court system, while arbitration is a less formal and more confidential process that involves a neutral third party making a final and binding decision.

To offer an opinion or recommendation to the parties involved

True

Non-trial evaluative techniques in construction dispute resolution involve a neutral third party who evaluates the dispute and provides an opinion or recommendation to the parties involved. Examples include mediation and expert determination.

To provide a predetermined amount of money to the client in the event of a breach of contract

False

Liquidated damages in construction contracts are a predetermined amount of money that a contractor agrees to pay to the client in case of specific breaches of the contract, such as delays. They are applicable when specified in the contract and should be reasonable and reflect the actual losses or costs incurred by the client.

Non-trial evaluative techniques involve a neutral third party evaluating the dispute and offering an opinion or recommendation.

Liquidated damages are a predetermined amount of money that a contractor agrees to pay to the client in the event of a breach of contract, providing a clear and certain remedy for the client and an incentive for the contractor to meet their obligations.

Non-trial evaluative techniques involve a neutral third party evaluating the dispute and offering an opinion or recommendation, such as mediation and expert determination.

True

False

False

The choice of method will depend on the specific circumstances of the dispute, including factors such as time, cost, privacy, and the desired outcome.

Liquidated damages are a predetermined amount of money that a contractor agrees to pay to the client in the event of a breach of contract, providing a clear and certain remedy for the client and an incentive for the contractor to meet their obligations.

True

Liquidated damages are a predetermined amount of money that a contractor agrees to pay to the client in the event of a breach of contract, providing a clear and certain remedy for the client and an incentive for the contractor to meet their obligations.

False

The arbitrator in construction disputes is an independent third party who makes a binding decision based on the contract between the parties. The arbitrator's decision is usually final and binding, meaning that the parties must abide by the decision, and there is limited opportunity for appeal.

It can be more formal than going to court

The benefits of using arbitration to resolve construction disputes include faster, less expensive, and more private resolution than going to court. It is most effective when the parties want to avoid the time, expense, and uncertainty of litigation, and when the arbitration process is tailored to their specific needs.

The choice of method will depend on the specific circumstances of the dispute, including factors such as time, expense, confidentiality, and certainty of remedy.

The choice of method will depend on the specific circumstances of the dispute and the advantages and disadvantages of each method.

False