Arbitration remains a sound choice for resolving construction disputes, offering confidentiality, a decision by a knowledgeable arbitrator or panel, and frequently, speedier and more efficient resolution. That said, how the arbitration clause is drafted can significantly improve the efficiency of the arbitration, or hamstring the process and invite unnecessary and costly procedural disputes.
Counsel often use a bare-bones arbitration clause covering only the basic necessities, such as the JAMS form clause:
Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof … shall be determined by arbitration in (the desired place), before (one) (three) arbitrator(s). The arbitration shall be administered by JAMS pursuant to its Engineering and Construction Arbitration Rules & Procedures … Judgment on the Award may be entered in any court having jurisdiction.
