No matter what industry you are in, no two construction projects will be
identical. That is because there are so many variables, such as site conditions,
construction methods, suppliers, and even character differences that come
Today’s construction projects are notorious for being complex, and
the technology more advanced than ever before. The days of the “handshake”
agreement are long gone, only to be replaced with complex documents that
if drawn up correctly, seek to set forth solutions in case a
Despite earnest efforts and the best intentions, construction project failures
arise, often because a lack of early stage planning or a fallout in communication.
Often, the risk is passed to one of the parties and the risk-shifting
falls upon the ones that are unable to withstand the burden.
A survey by the National Construction Dispute Resolution Committee was
conducted upon more than 150 professionals in the construction industry,
including engineers, architects, general contractors, arbitrators and
business law attorneys.
The survey discovered that nearly 90% of the respondents had participated in
alternative dispute resolution (ADR) at some point in their careers, a strong indication that ADR is
frequently used to resolve disputes in the construction industry.
The survey also found that there was an emerging desire among industry
professionals to find a more effective way to avoid and resolve construction disputes.
The respondents concurred that overall, it was understood that each project
has its own unique circumstances, any of which may require the stakeholders
to explore tailored processes for addressing issues as they arise and
resolving disputes swiftly and cost-effectively.
Alternative Dispute Resolution (Arbitration)
With arbitration, a form of ADR, the parties’ dispute goes before
an impartial third party or a panel for a binding decision, although the
parties may prefer to opt for a non-binding arbitration.
If you are involved in a construction dispute, we suggest that you
contact a Chicago business law attorney from Rifkind Patrick LLC. We can answer your questions and help you explore
all of your legal options, including ADR.