Can arrangements for alternative dispute resolutions be established by contractual agreement or at dispute onset?

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Arrangements for alternative dispute resolutions (ADRs) can indeed be established by contractual agreement or at the onset of a dispute. This flexibility allows parties involved in a construction project—or any contractual relationship—to determine in advance how they will handle potential disagreements, which can be beneficial for maintaining positive working relationships and reducing costs associated with lengthy litigation.

By incorporating ADR clauses into contracts, parties agree in advance to processes such as mediation or arbitration, allowing for a more streamlined and less adversarial resolution compared to traditional court proceedings. Additionally, if a dispute arises without a prior agreement, the parties can still choose to engage in ADR rather than resorting to litigation, showcasing the option's availability at different stages of their interaction.

Establishing ADR arrangements both upfront and at the time of a dispute highlights the importance of flexibility, mutual consent, and the desire to find practical solutions that serve all involved parties.

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