How Can Construction Companies Avoid Litigation?

The construction industry is considered as one of the most dispute-ridden industries. Companies often get involved in costly litigation cases that usually take years to resolve. Moreover, there are no specialist courts in Canadian provinces such as Edmonton (Alberta). Rather, only the Canadian province Ontario has a specialist court.

How would a construction company avoid litigation case

Now the question is- How can construction companies avoid litigation using ADR if there are no specialist courts in their province?

Well, typically, companies contact a commercial lawyer to resolve the disputes. Lawyers often use the method of alternative dispute resolutions to settle conflicts as efficiently as possible.

What are these alternative dispute resolution (ADR) processes? Let’s find out!

Adjudication

Adjudication is an interim dispute resolution method. Here the adjudicators provide a decision that is binding on both parties. Generally, the adjudicator is a third party, making it easier to settle the case without any biases.

It is also noteworthy that the decision of adjudication remains in power unless it is revised in arbitration or litigation. This method is generally quick and best suitable for small disputes. It is also less expensive than court proceedings.

So, if you are trying to resolve a dispute in Edmonton, it is essential to look for the best Edmonton commercial lawyer to represent the case to the adjudicator. They can come up with creative case strategies that’ll ensure a favorable decision. Plus, the presence of a lawyer during the case settlement process also ensures that everything goes according to the laws.

Expert determination

Expert determination clauses are found in several business agreements regardless of the industry. Here, an independent decision-maker resolves the issue that binds both parties. However, it is not similar to arbitration of the dispute.

In simple terms, legal effects and the process of expert determinations is significantly different from arbitration. Also, the expert determination method is mostly used when the dispute is related to the valuation- as this method is less formal, it is quicker and more affordable.

Apart from this, it is also used during the arbitration method. Here, the role of an independent decision-maker is judicial, involving finding facts and laws.

Mediation

Mediation is the most common and widely used method to avoid litigation in the construction industry. In fact, using mediation is mandatory for resolving complex construction disputes. Unlike the methods mentioned above, the mediator does not make any decision here. Instead, the role of the mediator is to facilitate discussion between parties.

It is also noteworthy that mediators are often experienced senior lawyers, retired judges, or other professionals. So, they have proper knowledge about the country or state laws. And the best part about this method is that everything that happens during the mediation process remains highly confidential.

It generally takes around 1 or 2 days to arrive at a mutual resolution. However, discussions might last a little longer depending upon the case or circumstances.

To sum it all up!

These are some of the alternative dispute resolution methods that construction companies often use to avoid getting involved in litigation. Nevertheless, it is wise to settle any commercial disputes as soon as possible. It’ll help the company save time and money.