{"id":903758,"date":"2024-12-26T16:31:15","date_gmt":"2024-12-26T23:31:15","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903758"},"modified":"2024-12-26T16:31:18","modified_gmt":"2024-12-26T23:31:18","slug":"arbitration-numerous-benefits","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/","title":{"rendered":"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0"},"content":{"rendered":"\n

Christopher Rifer | Ahead of Schedule<\/a><\/p>\n\n\n\n

Arbitration agreements have become commonplace in construction contracts. As a result, a significant portion of construction disputes are resolved privately through arbitration rather than in public courts.<\/p>\n\n\n\n

Arbitration<\/a> has many benefits ranging from cost savings and faster resolutions to a private forum that keeps disputes from spilling out into the public arena to adjudication by an experienced construction practitioner. There is good reason why most construction lawyers recommend arbitration to their clients and why those clients regularly come away satisfied with that recommendation.<\/p>\n\n\n\n

But for all the considerable benefits of arbitration, there is a downside: the increasing prevalence of arbitration has contributed to a slowdown in the development of construction law.<\/p>\n\n\n\n

Construction law is an amalgamation of principles from various sources of law. Common-law contract and tort doctrines, statutes passed by Congress or the state legislature, and regulations issued by federal and state agencies all have important parts to play. But how those common-law doctrines work in the construction context isn\u2019t always clear. And even the best-worded statutes and regulations can\u2019t possibly provide clear answers for every scenario that will arise.<\/p>\n\n\n\n

As a result, construction case law provides an important good to the industry as a whole\u2014it fills in the inevitable gaps left by other sources of law. Case law, which is the product of opinions written by judges addressing the lawsuits before them, provides valuable guidance about how legal doctrines, statutes, and regulations apply to real-world circumstances. And parties can use those judges\u2019 opinions to help predict how those same doctrines, statutes, and regulations will apply to their circumstances. That, in turn, delivers greater certainty to the industry and helps owners and contractors alike realize the considerable savings that can flow from that certainty.<\/p>\n\n\n\n

Arbitration, however, does not generate case law. So, if an arbitrator issues a well-reasoned decision interpreting a statute and applies it to that case in a way that could guide the industry\u2019s conduct in the future, the industry usually can\u2019t benefit.<\/p>\n\n\n\n

This isn\u2019t a hypothetical issue. Take Oregon\u2019s prompt pay statute, ORS 701.630, as one example. Prompt pay statutes are often at issue in construction litigation. And yet, in the more than two decades in which Oregon\u2019s prompt pay law has been on the books, it has never once been cited\u2014let alone analyzed\u2014in any reported case. So how \u201cmaterial\u201d must a contractual provision be to justify withholding billing under ORS 701.630(4)(h)? Do the \u201ccosts and reasonable attorney fees\u201d authorized by ORS 701.630(7) include expert witness fees? Courts have not provided clear answers.<\/p>\n\n\n\n

Although arbitration isn\u2019t the only factor holding back the development of construction law, it is undoubtedly a meaningful contributor. Fixing this, however, presents a collective action challenge for the industry. The benefits of arbitration to industry participants are real and significant, so many can and should consider arbitration as an option. But the industry as a whole benefits from well-developed case law.<\/p>\n\n\n\n

The challenge, then, is to find a way to advance the law while keeping the benefits of arbitration available to industry participants. Should the industry consider opening avenues for publicizing arbitration orders that address novel legal issues\u2014perhaps on an anonymized basis? Should the industry support a more robust body of scholarly work to provide persuasive authority to fill some of the gaps left by the absence of case law? Or is a slowdown in the development of construction case law an acceptable industry-wide price to pay for the many party-specific benefits of arbitration?<\/p>\n\n\n\n

Whatever the path forward, the conversation about the use of arbitration in the construction industry should consider the costs to the development of construction law along with the benefits of arbitration.<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Christopher Rifer | Ahead of Schedule Arbitration agreements have become commonplace in construction contracts. As a result, a significant portion of construction disputes are resolved privately through arbitration rather than in public courts. Arbitration has many benefits ranging from cost savings and faster resolutions to a private forum that keeps disputes from spilling out into… Continue reading The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[9895,42],"class_list":["post-903758","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-advise-consult","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nThe Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-26T23:31:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-26T23:31:18+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0\",\"datePublished\":\"2024-12-26T23:31:15+00:00\",\"dateModified\":\"2024-12-26T23:31:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\"},\"wordCount\":663,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"arbitration\"],\"articleSection\":[\"Arbitration\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\",\"name\":\"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2024-12-26T23:31:15+00:00\",\"dateModified\":\"2024-12-26T23:31:18+00:00\",\"description\":\"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.","description":"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/","og_locale":"en_US","og_type":"article","og_title":"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.","og_description":"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2024-12-26T23:31:15+00:00","article_modified_time":"2024-12-26T23:31:18+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0","datePublished":"2024-12-26T23:31:15+00:00","dateModified":"2024-12-26T23:31:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/"},"wordCount":663,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","arbitration"],"articleSection":["Arbitration"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/","name":"The Collective Cost Paid for Arbitration\u2019s Numerous Benefits\u00a0 - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2024-12-26T23:31:15+00:00","dateModified":"2024-12-26T23:31:18+00:00","description":"Arbitration has many benefits ranging from cost savings and faster resolutions, but there is also a downside","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/arbitration-numerous-benefits\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3N6K","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/903758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=903758"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/903758\/revisions"}],"predecessor-version":[{"id":903759,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/903758\/revisions\/903759"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=903758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=903758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=903758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}