Difference between Construction Litigation and Construction Arbitration

Construction litigation and construction arbitration are usually the 2 main types of disputes that can be solved between individuals in the construction industry. Construction arbitration is the one when the dispute can be solved via a mediator or a third-person. In construction litigation, dispute is solved inside a courtroom due to the failure of the mediator. However, it is important to understand the differences between the two.

The Differences

  1. Price – To solve a dispute in regards to construction litigation, a hire must be involved. On the other hand, hiring a lawyer may not be necessary when it comes to construction arbitration however, the fees of the arbitrator will be different depending on the experience.
  2. Speed – Construction arbitration issues can be solved much quicker especially with the help of an arbitrator. While construction litigation disputes take longer time to solve since the matter is taken to the court.
  3. Evidence – Although construction litigation disputes are taken to the court, the judge first hears the parties, studies the evidence, understands and then passes his or her verdict. On the other hand, construction arbitration disputes tend to become a nuisance as no evidence is involved which can be frustrating.
  4. Appeals – Construction litigation involves appeals from the losing party while construction arbitration does not involve any form of appeals.

These are the basic differences between construction litigation and construction arbitration. Involving a construction lawyer is always beneficial for many reasons such as solving disputes, save money, protect your assets, give you legal advice and more.

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