When construction firms and their lawyers evaluate business terms in contracts, they often reflexively insert a boilerplate arbitration clause. This may jeopardize the inherent benefits of arbitration and result in a more expensive, disruptive and inefficient proceeding. Arbitration enables parties to tailor the process to fit their needs and bypass litigation. A vital step is considering upfront the details of the procedures most suitable to any likely disputes. Parties to a contract should evaluate if a simple AAA arbitration clause found in most industry form documents is sufficient or if customization is needed.
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