AMERICAN ARBITRATION A CONSTRUCTION INDUSTRY ARBITRATION RULES 2025

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Construction arbitration is a form of binding alternative dispute resolution that is specifically tailored to handle conflicts within the construction industry. The process enlists the services of an impartial third-party arbitrator with specific construction law expertise.
(The complete text of Rule 59 is set forth in Appendix A.) Generally, Rule 59 allows a party to arbitrate its affirma- tive claims against the party who fails to or refuses to pay its share of the deposits for arbitrator compensation, expenses, and administrative charges.
Always get straight to the merits without berating the other side or whining about how badly it has treated you. Another threat to your credibility is the kitchen sink arbitration demand or a response that includes numerous claims or defenses that have little chance of succeeding.
Disadvantages of Arbitration in Construction Disputes Higher Costs: Despite initial expectations, arbitration can become expensive due to extensive discovery practices and arbitrator fees, and the cost of expert witnesses.
The revised Rule R-7, however, requires all joinder and consolidation requests to be filed with the AAA prior to the appointment of the merits arbitrator. The AAA shall appoint a single arbitrator for the limited purpose of deciding consolidation and joinder requests.
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The arbitration clause should be simple and straightforward in identifying the scope of matters the parties agree to arbitrate, any applicable arbitration rules, and the institution (if any) administering the arbitration. Parties may also agree in advance to the number of arbitrators.

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