How are disputes between contractors and subcontractors resolved?

In Tennessee, disputes between contractors and subcontractors are typically resolved through arbitration. This process involves both sides presenting their case to an arbitrator, who then makes a ruling on the matter. The arbitrator can be either an individual approved by both parties or a panel of three arbitrators that both parties agree on. Arbitration is usually less expensive and faster than going through the courts. It is also binding, meaning that the arbitrator’s ruling is final and both parties must abide by it. The ruling can be enforced by the courts if either party does not comply. Another way to resolve disputes between contractors and subcontractors is through mediation. Mediation is similar to arbitration; however, in this process, the parties are actively communicating to reach a resolution and the mediator acts as a sort of moderator. The mediator does not make decisions for the parties; rather, they help them come to an agreement on their own. Regardless of which method is used to resolve disputes, it is important for both parties to know their rights and responsibilities under the law. To ensure that they are protected, contractors and subcontractors should consult with an experienced legal professional.

Related FAQs

What is the difference between an indemnification agreement and a hold harmless agreement in construction contracts?
What are the legal remedies available when a construction project runs over budget?
What is the difference between implied and express warranties in construction contracts?
What happens when there are delays in a construction project?
How do I know if I need a lawyer for a construction dispute?
What are the legal requirements for construction permits?
What is the process for filing a mechanic's lien in the construction industry?
What happens when a contractor fails to deliver?
What is the duty of care of a design professional in the construction industry?
How is fault determined in a construction dispute?

Related Blog Posts

Explaining Construction Law: What You Need to Know - July 31, 2023
How Construction Law Can Protect Your Business - August 7, 2023
Regulations to be Aware of When Pursuing Construction - August 14, 2023
Leveraging Construction Law for Your Project - August 21, 2023
Comprehending Construction Law in the Changing Landscape - August 28, 2023