Nuts & Bolts | Construction Law Blog

Arbitration continues to be the chosen dispute resolution process for many in the construction industry. Generally, arbitration is considered an efficient and cost-effective way to resolve most typical construction disputes.

Selecting arbitration as the dispute resolution process requires a written agreement. Most often, the arbitration agreement is included among many terms and conditions in the contract for a project. It is typically much easier to negotiate terms of arbitration agreement before a dispute arises as opposed to afterward, when parties often disagree about everything. Therefore, for those who want to make the most of the arbitration process, some advance planning is necessary to draft and negotiate a tailored arbitration agreement to take maximum advantage of the benefits.

Missouri’s Public Prompt Payment Act was enacted in 1990, with its most recent modifications taking effect in 2014. The statute, R.S.Mo. § 34.057, has extensive requirements for owners, contractors, subcontractors and suppliers on public works projects in Missouri. For those in the construction industry, it is worth reviewing periodically to ensure that standard practices on public jobs are in compliance.