HouseChalkArbitration
Arbitration is a method of resolving contract disputes outside of court, where a neutral third party (the arbitrator) makes a binding decision.
Why it matters
Arbitration is generally faster and more private than suing in court, but it is final and cannot usually be appealed.
Where people get this wrong
Arbitration is not the same as mediation. Mediation is a negotiation to find a compromise; arbitration is a private trial where the arbitrator forces a decision.
Real-world example
You and the builder disagree on whether a foundation crack is normal or defective. Instead of hiring lawyers for a public lawsuit, an arbitrator hears both sides and makes a final ruling.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
Most people do not just struggle with terms. They struggle with the decisions tied to them.
See how HouseChalk helps with the decisions behind terms like this