The Construction Arbitration Clause is essential in modern U.S. construction contracts as it provides a more efficient and specialized approach to dispute resolution compared to traditional litigation. This clause becomes particularly important when parties seek to avoid lengthy court proceedings and prefer industry-expert arbitrators. It must comply with the Federal Arbitration Act and relevant state laws, while addressing construction-specific considerations such as multi-party disputes, technical expertise requirements, and interim relief provisions. The clause typically includes detailed procedures for initiator arbitration, selecting arbitrators, and managing the arbitration process.
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1. Agreement to Arbitrate: Core provision establishing parties' agreement to submit disputes to binding arbitration
2. Scope of Arbitration: Defines what types of disputes and claims are subject to arbitration under the construction contract
3. Arbitration Rules and Governing Law: Specifies applicable arbitration rules (e.g., AAA Construction Industry Rules) and governing law
4. Arbitrator Selection: Details the process for selecting arbitrators, including number of arbitrators and required qualifications
5. Notice and Procedural Requirements: Outlines procedures for initiating arbitration, including notice requirements and time limits
6. Award and Enforcement: Establishes binding nature of arbitration award and enforcement procedures
1. Multi-Party Provisions: Special provisions for handling disputes involving multiple parties or related contracts
2. Consolidation and Joinder: Provisions allowing consolidation of related disputes and joinder of additional parties
3. Emergency Relief: Procedures for obtaining emergency or interim relief during the construction project
4. Cost Allocation: Specific provisions for allocating arbitration costs and attorneys' fees
5. Discovery Procedures: Special provisions regarding document exchange and discovery processes
1. Schedule A: Fee Schedule: Detailed breakdown of arbitration costs, fees, and payment responsibilities
2. Schedule B: Required Arbitrator Qualifications: Specific requirements for arbitrator expertise in construction matters
3. Schedule C: Arbitration Timeline: Expected timeline and deadlines for various stages of the arbitration process
4. Schedule D: Approved Arbitration Institutions: List of approved arbitration institutions and their relevant rules
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