Business projects often involve many parties, timelines and complex deliverables, all of which have to come together in just the right manner for the project to be successful. One issue that occurs sometimes is that each of these facets of the project can become the center of a dispute.
Businesses often use dispute resolution clauses to govern how these situations are handled. In some cases, they may include using an alternative to filing a lawsuit with the court. This is often beneficial because it can preserve relationships and keep project momentum moving forward.
What types of alternative dispute resolution are possible?
In some cases, contracts may require that parties use mediation to resolve disputes. This involves working with a neutral third party to help facilitate discussions and help to clarify the resolution options between parties. The mediator doesn’t come to the resolution alone. Instead, the party is simply a go-between that helps the parties to come to a decision that’s mutually agreeable.
Arbitration is another option that may be included in the contract. This may be the primary method, but it can also be one that’s used if mediation doesn’t work as intended. Arbitration is similar to going to court, although the process is a little less formal. The final decision about the outcome of the case is made by the arbitrator or arbitration panel, who listen to both sides of the matter.
Both of these alternative dispute resolution options can help to save businesses time and money while still allowing them to resolve contract conflicts. It’s critical to have someone on your side who can assist with creating the contract and enforcing the terms.
