The Benefits of Alternative Dispute Resolution Within the Construction Industry

The Benefits of Alternative Dispute Resolution Within the Construction Industry


 

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Construction law firms provide assistance to individual contractors and construction companies as well as commercial and residential real estate developers. The attorneys that work for construction law firms may focus on a specific area of construction law, such as commercial real estate development. In general, however, they will negotiate and execute contracts and represent their clients when there is a dispute, such as a breach of contract.

The Bureau of Justice Statistics provided data from the first national study of civil bench and jury trials. According to the findings of this study, breach of contract cases accounted for 33% of the civil cases that were filed within the state courts. A 2005 review of the civil cases that were filed in state courts provided the rate at which plaintiffs win bench and jury trials. While plaintiffs won bench trials 68% of the time, they won jury trials 54% of the time.

Even though construction law cases do go to court, the American Arbitration Association indicated that alternative dispute resolution is actually the preferred conflict management process within this industry. According to Cornel Law School’s Legal Information Institute, this process will usually include “early neutral evaluation, negotiation, conciliation, mediation, and arbitration.” Even though arbitration and mediation are the most common, an attorney will initially attempt to negotiate.

There are a variety of benefits to using alternative dispute resolution. Cornel Law School’s Legal Information Institute indicates that the primary benefit, however, is that the parties involved are in control and able to determine the solution or outcome. Other benefits include the avoidance of litigation costs as well as shorter resolution periods. In 2015, for example, the American Arbitration Association states that the median time frame was 232 days. This include the time from initially filing a claim to receiving an award.

When a contractor, construction company, or related enterprise believes they may need a construction lawyer, they can contact a firm for an initial consultation. At that time, they can discuss their legal matter in greater detail. Depending on the type of case, their attorney will be able to determine how best to proceed.

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