How are disputes between contractors and subcontractors resolved?

When disputes arise between contractors and subcontractors in California, they are usually resolved through negotiations or arbitration. Negotiations involve the parties coming together to try and reach an agreement about how to resolve the dispute. During negotiations, the parties can discuss their different perspectives to reach a mutually agreeable solution. When negotiations prove unsuccessful, the parties often turn to arbitration. In arbitration, a neutral third party, called an arbitrator, is called to hear both sides of the dispute and make a decision or an award as to how the dispute should be resolved. Typically, the award is binding and cannot be changed. The parties can also enter into binding and non-binding mediation, which is a type of dispute resolution process that is less formal than arbitration. During mediation, the parties work with a neutral third party—the mediator—to try and reach a mutually agreeable solution to their dispute. Finally, both parties can agree to bring the dispute to court with a lawsuit. This is often the most expensive and time-consuming option, but it can be necessary when the other methods of dispute resolution fail. No matter which means of dispute resolution is chosen, it is important for both parties to be open-minded and willing to compromise in order to resolve the dispute. Doing so will help ensure that the dispute can be resolved quickly and efficiently, so that the parties’ working relationship can continue.

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How are disputes between contractors and subcontractors resolved?

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