If you look at the dispute resolution section of a Home Warranty Company booklet or an insurance company policy, it will almost always specify binding arbitration as the process to be utilized to handle any construction-related disputes. In addition, you will probably find language requiring the arbitrator to have construction knowledge. This dual dispute resolution procedure was selected after many years of experience by these companies with construction-related disputes. Let’s explore why the home warranty companies and insurance companies have chosen binding arbitration provided by a construction-knowledgeable arbitrator to handle their disputes. (more…)

By Peter G. Merrill

The Alternative Dispute Resolution (ADR) industry has long been advocating that mediators and arbitrators (ADR Specialists) need only to be trained and experienced as mediators and arbitrators and that it was not necessary for the ADR Specialist to have any specific knowledge concerning the issues in dispute. It was helpful for the ADR Specialist to have a limited knowledge of the issues but not necessary. I have heard many times that “A good mediator is a good mediator” and can assist the parties in coming to a satisfactory resolution to their dispute. In many cases, that is true. The ability of an ADR Specialist to listen to the parties and use reason and understanding is without question a major necessity of an effective mediator or arbitrator. When dealing with disputes related to general business decisions, divorce or matrimonial issues, family matters and other general disputes, well-trained and experienced ADR Specialists can be very effective in helping the parties come to a final resolution to their dispute. Construction is another matter. (more…)

By Peter G. Merrill

It is virtually impossible to complete a large construction project without any disputes developing between any of the parties. Those who plan ahead will most likely be less adversely affected by the disputes that might develop. Although Dispute Review Boards (DRB) have been around for many years, they traditionally only offer advisory opinions upon which the parties should be able to resolve their dispute through discussions based on those advisory opinions. If the parties can not resolve their dispute after considering the advisory opinion of the DRB, they would need to proceed on to an outside arbitration or to litigation, whichever is specified in the construction contract, or Dispute Review Board Agreement, to reach a final and binding resolution to the dispute. (more…)