If you choose to work with a contractor during the construction of your home or other property, you will likely be asked to sign some type of construction contract. While these contracts may help protect each party involved in the construction process, they cannot address every issue that may arise. In the unfortunate event you are faced with construction delays, unexpected expenses or poor craftsmanship, you may eventually consider taking the legal route to resolve your issue. However, before filing a lawsuit, consider having an attorney look over your contract for any clauses regarding alternative dispute resolutions.
In the event an issue arises between a homeowner and their contractor, both parties may face a lengthy and expensive litigation. These lawsuits also have the potential to cause substantial damage to a home contractor's reputation. In an attempt to keep disputes out of the courtroom, home contractors may include dispute resolution clauses in their contracts. If enforceable, these dispute resolution clauses may require that homeowners seek alternative means for resolving their issues all there than the traditional litigation.
Arbitration and mediation are both alternative means to dispute resolution that a homeowner may be required to take before entering into any litigation action. While these means of dispute resolution are typically less expensive, they may require a certain level of cooperation between parties. For homeowners who are in contentious disputes with their home contractors, these means of resolution may not be adequate.
Before entering into any contract, homeowners may wish to speak with an attorney regarding any alternative dispute resolution clauses, their requirements and enforceability. With the help of an attorney, homeowners can rest assured their interests are protected and that they are entering into a contract they understand.