Many construction contracts, especially on private projects, contain alternative dispute resolution provisions. These provisions often incorporate the Construction Industry Rules and Mediation Procedures of the American Arbitration Association (AAA). These Rules and Procedures were revised effective March 1, 2024.
Among the changes are the following:
- Fax numbers (and Fax communications) have been eliminated in favor of email.
- Preliminary hearings may now be conducted by videoconference.
- Requests to consolidate matters in arbitration or join additional parties to an arbitration must be made prior to the appointment of the Merits Arbitrator.
- The ceiling for Fast Track procedures is raised to $150,000.00.
- The minimum required for the appointment of a three-arbitrator panel (as opposed to a single arbitrator) is now $3 million.
It is important for those engaged in the construction industry to become familiarized with these revisions now, before having to confront them for the first time in a construction arbitration.
