Arbitration Drives out Litigation in Construction Disputes

Arbitration Drives out Litigation in Construction Disputes

Arbitration Drives out Litigation in Construction Disputes

In the Australian legal system, you can choose between arbitration or litigation. If you are in the construction business and you are currently facing a legal issue then you should know that arbitration drives out litigation in construction disputes. To understand this though, you need to first know the difference between arbitration and litigation. 


This refers to a process where a legal matter is referred to a private arbitrator. The job of the arbitrator is to determine the outcome of the dispute and to end it by determining the awards necessary. Of course, the outcome is determined according to the relevant legislation involved. The award that results in the arbitration procedure has the same binding effect as a court order. Concerning party can appeal the result of an arbitration procedure but only if there has been an error of fact or law. One cannot appeal an arbitration result simply because he or she does not like it.

The arbitration is flexible and can resolve a case in just a matter of weeks. And it can usually avoid delays and the costs that usually comes with litigation. It can settle issues that mediation has failed to resolve.


On the other hand, litigation is a legal process where a judge decides the final outcome of the case based on concerning laws and evidences put before him. The cause of action that follows as well as the remedies will be based on existing laws and legal precedents. The results are totally out of the control of the concerning parties. The order of the judge may be appealed but only when there is error in law or fact.

Litigation is usually considered as a last resort because it can be very time consuming and because of the high cost involved.  Arbitration drives out litigation in construction disputes. This is why many people prefer arbitration in construction disputes.

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