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American Arbitration Association’s New Rules Governing Construction Disputes Go Into Effect


Posted on July 10, 2015

In February, this blog discussed American Arbitration Association’s (“AAA”) release of “Supplementary Rules for Fixed Time and Cost Construction Arbitration” for the resolution of construction disputes.  Those rules made substantial changes to the way in which construction disputes are arbitrated in an attempt to make the process faster and cheaper.

Specifically, the supplemental rules: (1) Placed limits on the time and maximum fees allowed in an arbitration; (2) Limited arbitration demands and corresponding answers are to five pages; and (3) Required arbitration awards be made within twenty days from the close of a hearing.

Last week, on July 1, 2015, the AAA’s Revised Construction Industry Arbitration and Mediation Procedures went into effect, further modifying the way in which such disputes are handled.  These are the highlights to the new procedures:

As the new rules are little more than a week old, it is yet to be seen whether they will have any noticeable impact on the manner in which arbitration is handled and perceived. The decision whether to submit a dispute to arbitration, and the terms of an arbitration is something that should be discussed with experienced legal counsel.  For questions regarding arbitration, or any other aspect of Ohio construction law, please contact Todd Harpst or Nick Horrigan, at Harpst Ross, Ltd. – Business Lawyers for the Construction Industry®, at (330) 983-9971 or tharpst@harpstross.com or nhorrigan@harpstross.com.

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