Arbitration Agreement:

An arbitration agreement is a written contract between parties involved in a construction dispute, in which they agree to submit their differences to a private and binding dispute resolution process conducted by one or more impartial arbitrators. The agreement typically outlines the scope and nature of the dispute, the selection and authority of the arbitrator(s), the rules and procedures for the arbitration process, and the finality and enforceability of the arbitration award. The purpose of an arbitration agreement is to provide a faster, more flexible, and more confidential alternative to traditional litigation for resolving construction disputes. Arbitration is often preferred in construction projects because it allows the parties to choose arbitrators with specialized expertise, to tailor the process to their specific needs and circumstances, and to obtain a final and binding decision without the delays and appeals of court proceedings. The arbitration agreement is a legally binding document that sets the framework for the arbitration process and the rights and obligations of the parties.