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Contracts & Legal

Arbitration

In Plain English

A private process where a neutral third party hears both sides of a dispute and makes a binding decision.

Definition

Arbitration is a private dispute resolution method in which parties present their case to one or more neutral arbitrators who render a binding decision. It is faster and less expensive than litigation and is a common dispute resolution mechanism in AIA and other construction contracts. Arbitration awards are enforceable in court and typically are final with limited appeal rights.

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