The Arbitration Clause Arbitration has long been the dispute resolution method of choice in the construction industry. Most construction contracts contain an arbitration clause. Even if an arbitration clause does not appear in the body of the contract, such a clause may have been incorporated by reference. Paragraph 4.5 of A201 is an arbitration clause. If your client has signed a construction contract that incorporates A201 by reference, your client has agreed to arbitrate any dispute arising out of the construction contract.
Most construction contracts require the contractor to provide performance and payment bonds.
In a payment bond, the surety promises that the subcontractors and materialmen who have contracted with the general contractor will be paid for their services and materials. The surety company that issues the bonds can be a useful partner in the search for resolution of a construction dispute. It is in the surety's interests for the contractor to meet all of its obligations and complete the project in accordance with the contract. When a dispute arises prior to the completion of the construction project, the surety can be a valuable asset in fashioning a settlement. Bring the surety into the case at an early stage to increase your chances of resolving the dispute.