How is dispute resolution handled in government contracts?
In North Carolina, dispute resolution in government contracts is handled through a process called alternative dispute resolution (ADR). ADR processes are used in order to avoid the cost and time associated with going to court and instead provide a way to resolve disputes outside the court system. In a government contract, the parties involved must agree to use an ADR process if they have a dispute. The ADR process can include a variety of options such as mediation and arbitration. In mediation, a neutral third party facilitates the parties in the negotiation process and helps them reach a mutually-acceptable resolution. In arbitration, the parties agree to a private resolution, based on the determination of an arbitrator. To ensure that the parties resolve their dispute through the ADR process, the parties must also agree to be bound by the decision issued by the third party. If one of the parties is not willing to accept the decision, they may still have the option to take their dispute to court. The ADR processes used to resolve disputes in government contracts can help save time and money by providing a quicker, cheaper resolution than going to court. They also provide a more informal setting, which can be beneficial for certain types of disputes.
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