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Despite the best efforts to complete a construction project and resolve all claims that arise, sometimes disputes continue to the end of the project. The parties have a couple of options to resolve them. A lawsuit is always a possibility, but hopefully the construction contract allows for Alternative Dispute Resolution (ADR).

Mediation or Arbitration – Alternate Means of Construction Dispute Resolution

The contract documents, specifically the General Conditions of the Construction Contract (as published by the EJCDC or the AIA) lay out a procedure for dispute resolution. For years binding arbitration appeared in these documents as the proposed means of ADR. This has been replaced by mediation.

The EJCDC General Conditions read: “Either Owner or Contractor may request mediation of any Claim…. The mediation will be governed by the Construction Industry Mediation Rules of the American Arbitration Association…. Owner and Contractor shall participate in the mediation process in good faith.” The General Conditions also set out deadlines and procedures for requesting mediation, and what may happen if mediation fails.

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