During a project dispute, the contract specifies mediation first, then arbitration if mediation fails. What is the main advantage of this stepped approach?
Correct Answer
D) It reduces legal costs and maintains business relationships
The stepped approach from mediation to arbitration is cost-effective and helps preserve business relationships, as mediation is collaborative while arbitration provides binding resolution if needed.
Why This Is the Correct Answer
The stepped approach from mediation to arbitration is cost-effective and helps preserve business relationships, as mediation is collaborative while arbitration provides binding resolution if needed.
More NASCLA Questions
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
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What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
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