Which method is commonly used for resolving disputes in construction?

Mediation and arbitration are widely recognized as effective methods for resolving disputes in construction. This approach stands out due to its efficiency and adaptability compared to litigation, which can be time-consuming and costly. Mediation involves a neutral third party helping the disputing parties communicate and reach a mutually satisfactory resolution, while arbitration is a more formal process where an arbitrator makes binding decisions after considering the evidence presented.

Both mediation and arbitration often lead to quicker resolutions than court litigation, allowing parties to maintain relationships and proceed with their projects with minimal interruption. This makes these methods particularly attractive in the construction industry, where ongoing collaboration among stakeholders is common.

In contrast, litigation often involves a lengthy process through the court system, which can hinder progress and increase expenses. Negotiation is another option, but it may not always involve a structured resolution process. While public hearings can serve specific purposes, they are typically not designed for private dispute resolution. Thus, mediation and arbitration emerge as the preferred methods in resolving construction disputes effectively.