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Mediation vs. arbitration for construction defects

On Behalf of | Apr 14, 2022 | Construction Disputes

A construction dispute in Texas is a serious issue that can affect the quality of your ongoing project. There are a number of methods that you may be able to employ in order to resolve the dispute, and you may not have to go to court.

Mediation can help you find a solution

If the trouble is due to construction defects, it would be best to resolve the situation as soon as possible. One of the methods you can use to arrive at a solution that is fair to everyone is mediation.

This is a process in which you both sit down with a person who is empowered to act as an official mediator. This is a person who listens to both sides and gives suggestions on how to proceed. However, a mediator has no power to enforce a decision. You can take or leave the advice that they give.

Arbitration can be a more binding process

Some business owners may prefer to skip the process of mediation and go straight to arbitration. This process has many of the same aims. However, it also differs in a few key areas.

The arbitrator is a neutral party. However, they are given the same power as a judge in a court of law. The decision that they come to is final regardless of whether the disputing parties can agree on their own.

You can choose in advance whether the arbitration will be binding. If you choose the binding method, you will have to abide by whatever decision your arbitrator comes to. If you choose the non-binding method, you can choose not to abide the arbiter’s decision. However, in this case, the only other alternative is to go to court.