Construction Arbitration - ADR Systems

ADR Systems

Construction Arbitration

Construction disputes are often complex, costly and time-consuming, frequently involving issues related to construction defects, project delays, scope of work, change orders, payment and more. Court backlogs and trial delays in state and federal court, as well as extensive discovery and motion practice can significantly increase the lifespan and cost of these stressful disputes. ADR Systems’ arbitration services provide a structured, efficient and binding alternative to litigation, where a neutral arbitrator of the parties’ choice renders a final, merits-based decision on the case in accordance with substantive law and the rules chosen by the parties.

If you are representing clients involved in a construction dispute and want to pursue arbitration as an alternative to litigation, explore our Find A Neutral page to review the biographies of neutrals with experience arbitrating construction disputes. If you would like to include an ADR clause in your construction contract, please see our Model Clause Language found here.

Neutral Availability

How to Initiate Construction Arbitration

Contract Clause
If the clause language does not provide for arbitration under ADR Systems’ Commercial Arbitration Rules, or there is no arbitration clause in the contract, the parties can agree to arbitrate with ADR Systems using our Stipulation Form.

Submit a Demand
If the parties have not stipulated to arbitration or if there is clause language providing for arbitration by ADR Systems, the parties must complete and sign a Demand for Arbitration

Administrative Conference
Case managers at ADR Systems coordinate an administrative conference call to set hearing dates, discovery scope, witness schedules and briefing timelines.

Hearing & Award
Proceed with the hearing in the agreed format. The arbitrator issues a written, enforceable award.

What Is Construction Arbitration?

Construction arbitration is defined as a formal, adjudicatory process that replaces court litigation. Here’s how it works at ADR Systems:

  • Binding Decision-Making: Parties select a single arbitrator or a tri-panel who hear evidence and arguments before rendering a binding award — final and enforceable in court, with limited grounds for appeal under the Federal Arbitration Act.
  • Flexible yet Formal Procedures: Arbitration follows streamlined rules such as ADR Systems’ Commercial Arbitration Rules or other jointly selected rules.
  • Neutral Selection: Parties nominate an arbitrator — or if they cannot agree, ADR Systems appoints one consistent with agreed-upon rules.
  • Efficient & Private: Compared to unpredictable court timelines, arbitration is a quicker process and private – protecting sensitive business and project information.
  • Cost Savings: The streamlined process of arbitration reduces discovery, motion practice and overhead costs.

Advantages of Arbitrating Construction Disputes with ADR Systems

Experienced Neutrals
Our panel includes former judges and seasoned attorneys with deep experience adjudicating construction disputes – everything from mechanics lien claims and construction defects to project delays and breach of contract.

Tailored Arbitration Rules
Choose from ADR Systems’ comprehensive, user-friendly arbitration rules, or opt for customized rules that match your needs — whether for expedited resolution, or resolution of a single claim.

Efficient Case Management
Our trained case managers support you every step of the way — by coordinating logistics, managing deadlines and streamlining communications between the parties and arbitration panel.

Multiple Hearing Formats
Choose in-person, remote or hybrid hearings — our neutrals and support staff provide secure, professional services regardless of how parties wish to participate.

Common Construction Arbitration Matters

Our arbitrators handle a wide array of construction-related disputes, including but not limited to:

  • Payment and budget disputes
  • Delays and scheduling conflicts
  • Construction defects
  • Scope of work disputes
  • Resource allocation disagreements
  • Environmental impact disputes
  • Breach of contract
  • Unforeseen conditions
  • Licensing and permit violations
  • Safety and regulatory compliance
  • Contractor and subcontractor disagreements

Judge F. Keith Brown did a great job settling a very tough, complicated multi-party case that involved both personal injury and commercial matters.  ADR Systems is our first and best choice for alternative dispute resolution.  This is because of the quality and effectiveness of their neutrals, and the terrific service supplied by their staff.

Glen Amundsen, Esq.Chairman - Executive Committee, SmithAmundsen, LLC
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