ARBITRATION AND THE SMALL PROJECT OWNER: SOME THOUGHTS AND SUGGESTIONS

Abstract

This article asserts that standard form arbitration clauses do not encourage fast and economical resolution of disputes on small construction projects. Furthermore, standard form clauses are frequently a hindrance to that goal. Instead of reliance on preprinted forms, both owners of projects and contractors will be more likely to resolve disputes by devoting sufficient time and legal talent to preparation of tailor made dispute resolution provisions. Such provisions must take into account the needs of the individual parties involved, as well as the legal climate of the community. Absent this attention to detail, use of a standard form arbitration clause leads to the same waste of resources as litigation and the frequently dissatisfying results that follow. It is also argued that in certain cases preservation of the right to litigate narrow legal issues is to be preferred over arbitration.