Resolving Disputes

Most construction disputes are about money and time. How you resolve them is set by the contract — read it before trouble starts.

The ladder (cheapest to most expensive)

1. Negotiation — direct, documented; most disputes should end here.
2. Mediation — a neutral helps both sides settle; non-binding, fast, confidential.
3. Arbitration — a private judge issues a binding decision; faster/quieter than court but hard to appeal (often AAA Construction Rules).
4. Litigation — public court; slow and costly, but full appeal rights.

Clauses that change the math

• Venue / governing law — which state's law and courthouse (matters a lot if you work out of state).
• Attorney-fees ("prevailing party") — winner's legal fees get paid by the loser; raises the stakes both ways.
• Notice & claim deadlines — again, miss them and you can lose.
• Mandatory arbitration — you may have waived your right to a jury without realizing it.

The cheapest dispute is the one you prevent with a clear contract, good documentation, and early communication.

Takeaway: Disputes follow a ladder — negotiate, mediate, arbitrate, litigate — and your contract's venue, attorney-fee, and arbitration clauses set the stakes; prevention through clear contracts and documentation beats all of them.

Educational overview — not legal advice. Construction law varies by state and by contract; consult a licensed construction attorney for your situation.