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New Rules Go into Place this Summer for Resolving Construction Industry Disputes through Arbitration

Friday, July, 10, 2015


Arbitration is frequently used in the construction industry to settle disputes. It is extremely effective and provides benefits to everyone involved in the dispute, and members of the American Arbitration Association believe it will improve even more with the institution of new rules this summer. The association has revised the official Construction Industry Rules and Medication Procedures with the intention of streamlining and making more cost-effective the process.

 

There are several changes in store, but some of the most significant include:

 

  • All claims of $100,000 or more will be subject to a mediation step. Both parties will have the ability to opt out of mediation, but first must attempt the process before proceeding with litigation.
  • There will be consolidation and joinder time frames and filing requirements in an effort to streamline the increasingly complex issues addressed in construction arbitration.
  • There are new preliminary hearing rules that are intended to provide additional structure and organization. This is an effort to ensure the arbitration process starts out on the right track.
  • Information exchange will be governed by a new set of rules so arbitrators have more control over limiting the exchange of information.
  • Contracts that began prior to July 1, 2015 will have availability of emergency measures of protection.
  • Arbitrators will have enforcement power to issue orders to those who refuse to comply with the rules or with any orders handed down by the arbitrator.
  • There is now permissibility of dispositive motions to dispose of any or all of a claim or to narrow the issue included in a claim.