How is dispute resolution handled in government contracts?

Dispute resolution in government contracts refers to how disagreements or conflicts between the government and a contractor are addressed. Generally, government contracts must include a dispute resolution clause that outlines the process to be followed in the event of a disagreement. In Washington, when a dispute arises, the parties will typically first meet to discuss the issue and attempt to resolve it through negotiation. If the parties are still unable to reach an agreement, there are several forms of dispute resolution available, including mediation and arbitration. Mediation is a process wherein the parties agree to voluntarily meet with a neutral third-party mediator to discuss the dispute and attempt to reach an agreement. The process is confidential and non-binding. Arbitration, on the other hand, is binding. An independent third-party known as an arbitrator listens to both sides of the dispute and issues a decision. However, this decision is not legally binding and either party can choose to take further action if they are not satisfied with the outcome. In some cases, the parties may decide to take the dispute to court. This is a lengthy and costly process, so it is usually only pursued if the parties cannot come to an agreement using any of the other dispute resolution methods. No matter which method of dispute resolution is used, it is important for both parties to adhere to the terms of the contract and to treat each other with respect in order to avoid costly disputes.

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How is dispute resolution handled in government contracts?

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