What is the legal process for contract disputes between parties in the construction industry?

In Maryland, the legal process for contract disputes between parties in the construction industry is outlined in the Maryland Contract Law. These contracts must be in writing and must include specific details of terms and conditions. If there is a dispute between parties regarding any aspect of the contract, the parties must first attempt to resolve it through negotiation or mediation. If the parties cannot reach a resolution this way, they can pursue arbitration or litigation. Arbitration is a process of dispute resolution where the parties present their case to a neutral third party, known as an arbitrator, who makes a binding decision based on the facts of the case. Litigation is a similar process, but it involves the parties presenting their case in court. In Maryland, construction law requires parties to engage in pre-suit mediation before initiating litigation. This is a voluntary process where both parties hire a mediator who will help them negotiate and reach an agreement. Once the dispute is brought to court, the judge will review the contract and decide on which party will receive compensation. The judge is bound by the law to interpret the contract according to the terms laid out in the contract. Depending on the nature of the dispute, either party can be awarded damages to make them whole. It is important for all parties involved in construction disputes to adhere to the legal process outlined in the Maryland Contract Law. Taking the time to review the contract with a construction law attorney is also a good idea to prevent potential disputes.

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