taken from Austin Construction News, May 2007
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The article basically outlines the advantages of arbitration in dispute resolution. It also distinguishes the difference between arbitration and mediation.
Main advantages of arbitration:
• Disputes will be heard by neutral individuals with extensive experience in the specific issue. In this case could be an architect or a builder. The concept discussed and the issues raised will be familiar to the arbitrators, thus limiting the amount of time needed to educate them about the case.
• Arbitration process are not public, so its good for company’s privacy.
• Quick process and often to be very effective.
Of course, arbitration has its disadvantages as well, an arbitration decision if final; there is no right for the losing party to appeal or other recourse.
Arbitration is often confused with mediation; there is a slight difference between the two. In mediation, no dispute is actually adjudicated, simply attempts to bring the parties to an arrangement in which they settle their respective claims
I personally think arbitration is an effective approach to settle a dispute. Architect and Construction Managers are imposed to huge amount of risk, both financial and reputation. So it is really important for us to settle any dispute arises, as the industry normally involves great amount of money.
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