Whether a project is ongoing or was completed previously, disputes over alleged construction defects can drain resources from both parties. Property owners and contractors alike have a great deal invested in these jobs, and waiting around for a court to decide complex issues usually is in no one’s best interests. 

One way that California tries to head off litigation in construction defect cases is through its “Right to Repair” law. This statute bars property owners from filing a lawsuit until they have notified a contractor they believe has done substandard work and given them a chance to propose a means of repairing the problem. Still, this prelitigation process often fails to produce a settlement, and parties find themselves heading toward a potentially long, expensive trial. 

Given the cost and importance of construction defect litigation, alternative dispute resolution (ADR) is often a better option. One method of ADR is mediation, where a neutral third party facilitates discussions between the disputing parties in pursuit of a mutually agreeable result. Mediation is particularly effective in construction defect cases because the parties already have a significant pre-existing relationship and a strong interest in prompt settlement. In mediation, you can also explore   creative solutions, such as repair agreements or financial offsets, that might not be available through litigation.

Arbitration is a more formal ADR method. In this process, a neutral third party renders a binding decision rather than simply encouraging parties to achieve consensus. As in court, each side can present arguments and evidence, but without having to go through a burdensome, adversarial court-supervised discovery phase. Parties can even select an arbitrator based on their construction expertise, rather than relying on a judge or juror unfamiliar with the complex issues that are raised. As arbitration is less time-consuming than litigation and allows for a private resolution of the dispute, many construction contracts clauses requiring disputes to be resolved through this process.  

If you’re facing a construction defect dispute, Quinn & Kronlund LLP offers ADR options tailored to your needs. Contact us today to learn more about how we can assist you in resolving your conflict effectively and efficiently. For a consultation, please call 209-943-3950 or contact us online. From our office in Stockton, we handle ADR matters throughout Northern California.