How are disputes between contractors and subcontractors resolved?

In South Dakota, disputes between contractors and subcontractors are generally resolved through contract negotiations or arbitration. Contract Negotiations involve each party attempting to reach an agreement on how to settle the dispute. This might include both sides compromising on certain issues, or one side agreeing to pay the other a certain amount of money. If negotiations fail, arbitration may be employed. During this process, a third-party arbitrator listens to both sides of the dispute and makes a final decision. This decision is usually legally binding and can be enforced in court if either party fails to comply. Beyond these two options, disputes between contractors and subcontractors can also be resolved through mediation. Mediation is a process in which a neutral third-party helps facilitate communication between the two parties to help them reach a resolution. Unlike arbitration, the mediator does not make any binding decisions, but instead helps the parties reach an agreement in which both accept. Finally, disputes can also be resolved through litigation in the court system. If a court rules in favor of one party, it can enforce awards, payment of legal fees, and other forms of relief.

Related FAQs

What types of waivers and releases are used in construction contracts?
How does the law protect contractors when disputes arise in the projects they are working on?
How is the quality of construction work evaluated?
How is a delay claim assessed in the construction industry?
What types of legal issues can arise in the field of construction law?
What is construction law?
What is a preliminary lien notice and when is it necessary?
What is the difference between implied and express warranties in construction contracts?
How can I protect myself from potential environmental liability in a construction project?
What are the legal requirements for filing a claim against an owner in a construction dispute?

How are disputes between contractors and subcontractors resolved?

Related FAQs

Related Blog Posts