DIY Legal Forms

“Help us to stay online by your kind donation.

Every penny will help.”


Arbitration Clause In Construction Subcontract Agreement

1. Issues. All claims and disputes between the parties to this Contract concerning the performance of this Contract or its interpretation shall be submitted to arbitration in accordance with this Paragraph ----------.

2. Terms of Arbitration. All matters subject to arbitration under this Paragraph ---------- shall be submitted to arbitration in accordance with the Construction Industry Rules of the American Arbitration Association, except as otherwise provided herein.

Arbitration shall be brought upon the written notice of one party to the other of a demand for arbitration, including a recitation of the claim or dispute for which arbitration is sought and a specification of the Arbitrator chosen by such party from a list of arbitrators prepared by the American Arbitration Association.

Arbitration shall be before a panel of three Arbitrators. Within [number] days of receipt of a demand for arbitration, the party receiving the demand must select a second Arbitrator from the said list and notify the other party of the first party's selection. Within [number] days thereafter, these two Arbitrators shall select a third Arbitrator from the said list.

If they fail to select a third Arbitrator, then the third Arbitrator shall be designated by the American Arbitration Association. If either party fails to designate an Arbitrator, then the claim or dispute shall be submitted to arbitration before a panel of three Arbitrators chosen by the American Arbitration Association.

3. Place. The hearing and disposition of claims and disputes shall take place in [county, state].

4. Continuation of Work. If a claim or dispute is submitted to arbitration, Subcontractor shall not cease work pending the arbitration award, but shall proceed with completion of all work, including work that is the subject of the dispute submitted to arbitration.

If Subcontractor refuses to proceed with such work and such refusal continues for [number] days, then Subcontractor waives any right to claim Subcontractor is not in default under this Contract and shall be liable to Contractor in damages for all losses suffered.

5. Remedies. All awards shall be made on the majority vote of the Arbitrators. In addition to other remedies, the Arbitrators are authorized to award either party a sum to compensate the party for time and expense of the arbitration if they determine that arbitration was demanded without reasonable cause.

In such event, the Arbitrators may also assess the costs for the arbitration proceeding against the party that demanded arbitration. In all cases, the costs of the arbitration proceeding shall be assessed against the party against whom the arbitration award is determined, or against both parties if the determination is against both.

6. Other Rights. The rights specified in this Paragraph ---------- are not exclusive of any other rights or remedies that Subcontractor may have under state or federal mechanic's lien laws or under any labor or material bonds, except as such rights are expressly waived by Subcontractor.

7. Final Award. The award in the arbitration proceeding shall be final and binding on the parties, and judgment on such award may be entered in any court having competent jurisdiction.