The Company and Seller will endeavor to resolve their disputes through mediation administered by the American Arbitration Association (AAA) in accordance with their mediation procedures for large and complex commercial disputes in effect at the time of this Agreement or any other alternative dispute resolution company. Construction contracts often include an alternative dispute resolution clause (ALSO REFERRed to simply as the “Dispute Resolution Clause”), which specifies how certain disputes are to be handled. Dispute resolution for construction contracts is essential as it prevents possible legal action. Construction disputes arise because a party may breach the contract in any way or a simple misunderstanding could arise between the parties. Conflicts can also arise for the following reasons: In Illinois, choice of jurisdiction clauses in a contract are prima facie and should be enforced by the courts, unless the other party proves that performance would be inappropriate in the circumstances. Compass Envtl., Inc.c. Polu Kai Services, LLC, 379 Fig. App.3d 549, 554-55 (1St Dist. 2008). A choice of forum made at an independent hearing in a business transaction will be applied by Illinois courts unless there is “compelling and contradictory cause.” Calanca v. D & S Mfg.

Co., 157 figs. App.3d 85, 88 (1st Dist. 1987). To meet this standard, a litigant would have to show serious inconvenience,” “to the point of being deprived of his or her day in court.” Id., at p. 90. If you would like to know more about dispute resolution in construction contracts, send your legal request to our UpCounsel marketplace. UpCounsel`s lawyers will assist you in all dispute resolution matters and assist you when the dispute ends in legal proceedings. In addition, our lawyers will help you add viable dispute resolution clauses that protect your interests in a construction contract. our standard contract form? While indemnification and insurance clauses often contain the finest language in a construction contract, an equally important or perhaps even more important clause, the dispute resolution clause, is often overlooked. As you do your final “spring cleaning” and prepare your business for the upcoming summer construction season, take a minute and withdraw your standard contract to determine if the dispute resolution provisions need to be cleaned up and refined. Also keep in mind that the parties waive their constitutional right to a trial before a judge or jury by choosing an alternative dispute resolution (ADR) procedure to resolve all disputes.

You will see that all the recommended contractual clauses begin with the confirmation that the parties are knowingly waiving their right to use the court system in favour of a faster, simpler and more cost-effective process that should lead to a fairer and fairer decision or arbitral award than would be the case in the judicial system. Since each dispute clause is part of the construction contract, the parties must agree prior to the work that an ADR of a particular method will resolve all disputes that arise in connection with the project. The clause generally requires the parties to waive their right to bring a construction dispute before the courts. If you really want to minimize your dispute resolution costs and the construction project is a residential project, the contractual clause in the Residential Construction Performance Guideline (below) should be used as an introduction to the dispute resolution section of your construction contract and should be followed by mediation, binding mediation, a med-arb or an arbitration clause. ● RCR: www.cpradr.org/resource-center/model-clauses/mediation-model-clauses Useful guides for drafting ADR clauses have been published by these organizations at these addresses on the Internet: NOTE: The above is an example of the wording of the proposed contract and can be modified in any way, including determining which party is considered to be the winning party and, as such, his reasonable attorneys` fees. and reasonable costs and expenses should be paid in any percentage that the arbitrator considers fair and equitable to the parties […].