Arbitration was traditionally the preferred dispute resolution path for the construction industry. Arbitrators with specialized knowledge of the construction process, construction law and no mandates with respect to the scope of permissible discovery were designed to make arbitration a cost-effective and streamlined dispute resolution option. In practice, however, that has not necessarily been the case. Arbitrations frequently get bogged down in expanded discovery, protracted preliminary pleadings practice and seemingly endless hearing dates.
Recently, the National Construction Dispute Resolution Committee and various construction industry focus groups expressed a preference for a more streamlined and cost-effective process to the American Arbitration Association (AAA). In response, the AAA has updated its construction arbitration rules with additions that look to further facilitate quick and economical resolution of disputes, while codifying previously ambiguous rules. The new rules went into effect July 1.
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