Construction businesses today do not have the margins to write-off cost overruns or unpaid contract balances as they could have in the past when there were more projects and higher profits. More parties are willing to fight for the last dollar. These disputes can add up, and the attorney’s fees can be disproportionately large. Without a compromise or other alternative, construction businesses must proceed with litigation and hope to manage attorney’s fees so they do not approach -- or exceed -- the amount in dispute.
But there are other options. The American Arbitration Association, or AAA, and JAMS, the “Resolution Experts” each offer an economical and efficient option to resolve smaller disputes under their “fast track’’ or “expedited’’ rules. Contracting parties might want to consider these options in their construction contracts.