Arbitration in Arkansas Construction: What It Is and How It Works

Arbitration on Arkansas construction sites: a practical path to quick, binding decisions

Disputes on a job site happen. A change order slips through; payment gets tangled; someone questions workmanship. In Arkansas, many crews turn to arbitration to settle these snags without the fanfare of a courtroom showdown. Let me explain what arbitration actually involves and why it’s a familiar tool in the construction world.

What arbitration is (and isn’t)

Think of arbitration as a private, faster alternative to going to court. A neutral person—the arbitrator—chairs the process. This person reviews the evidence, listens to arguments from both sides, and then hands down a decision known as the award. That award is binding, meaning the parties agree to accept it as if a court had decided the matter. Simple in concept, but with real bite in practice.

A quick contrast helps anchor the idea:

• Mediation: a neutral facilitator helps the two sides talk and try to reach a settlement, but the mediator doesn’t make a binding decision.

• Negotiation: the parties talk directly, perhaps with counsel, aiming to strike a deal without third-party involvement.

• Jury trial: a formal court process with jurors, guided by law, which tends to be longer and more costly, with higher stakes and more formal procedure.

• Arbitration: a private judge-like process where a designated, impartial decision-maker resolves the dispute and issues a binding ruling.

Why Arkansas contractors care about it

Construction projects—whether in Little Rock, Fayetteville, or remote site locations—create a lot of moving parts: schedules, budgets, quality specs, and subcontractors. Arbitration is popular here for several reasons:

• Speed and predictability: disputes are resolved faster than in traditional court, helping keep projects on track.

• Cost control: fewer procedural hurdles and tighter timeframes often mean lower legal bills.

• Expertise: you can appoint an arbitrator with specific construction industry knowledge, someone who understands change orders, delay claims, and site-specific challenges.

• Confidentiality: for many firms, keeping the dispute out of the public record is a plus—especially when reputations and client relationships are on the line.

• Enforceability: under Arkansas law (and the broader framework of federal and state arbitration law), arbitration awards are generally binding and enforceable, which gives parties real assurance.

Where arbitration fits in typical Arkansas contracts

Most construction contracts in Arkansas include an arbitration clause or a reference to arbitration rules (think organizations like the American Arbitration Association or JAMS). The clause usually covers:

• The seat and venue: where the arbitration hearing happens.

• The rules governing the process: how the hearings are run, the rules about discovery, how evidence is exchanged.

• The scope of disputes covered: payment disputes, change orders, workmanship claims, etc.

• The award and its consequences: how it’s issued, how to enforce it, and under what grounds it can be challenged.

A practical note: the “seat” of arbitration isn’t just a location; it helps determine which procedural rules apply and, importantly, how the award can be reviewed by courts if someone tries to challenge it. In Arkansas, many contracts choose a seat in a nearby city to keep things straightforward and locally manageable.

How the process typically unfolds

A construction arbitration isn’t a mystery show. It’s a structured, somewhat streamlined process designed to be fair and efficient. Here’s a peek behind the curtain of a standard arc:

• Initiation: one party files a notice of arbitration, briefly outlining the dispute and the relief sought.

• Choosing the arbitrator: the parties select a single arbitrator or a panel. You’ll want someone with construction know-how and a practical mindset. If you’re using a rules-based provider (AAA or similar), they’ll help with selection or set up a panel.

• Preliminary steps: a schedule is set. There’s usually limited discovery, especially compared with a court case. The goal is to keep things moving without turning the process into a data dump.

• The hearings: each side presents its case—witnesses, documents, expert testimony, and cross-examinations. The atmosphere is more flexible than a courtroom but still formal enough to keep the process credible.

• The award: after reviewing the evidence, the arbitrator issues a written decision with findings and a remedy or compensation amount. This award is binding unless challenged on narrow grounds (like arbitrator misconduct or undisclosed conflicts).

• Enforcement: if a party doesn’t comply, the other side can ask a court to enforce the award. In Arkansas, enforcement tends to be straightforward because arbitration awards are generally treated as court judgments.

A few nuances to keep in mind

• Discovery is different: you won’t get every document you might in a full-blown civil case. Instead, you’ll see a focused exchange tailored to the dispute at hand. This keeps costs lean and decisions timely.

• Expertise matters: the value of a construction-savvy arbitrator can’t be overstated. An arbitrator who understands change orders, submittals, and field conditions tends to deliver clearer, more defensible decisions.

• Confidential by design: many projects benefit from keeping the dispute and its resolution out of the public eye, protecting competitive positions and reputations.

• Limited grounds for appeal: arbitration awards aren’t a second bite at the apple the way some court decisions are. Challenging an award is possible, but the grounds are narrow and the standard for reversal is high.

What to watch for when you’re in Arkansas

• Selection rules: check who can serve as arbitrator and what qualifications are emphasized. If your project involves complex scheduling or risk allocation, you’ll want an arbitrator with a solid construction background.

• Rule set: AAA, JAMS, or other institutional rules shape timelines, discovery, and formats. Some Arkansas projects pair a local seat with rules that feel friendlier to construction professionals.

• Cost management: set expectations up front about fees, payment milestones, and how costs will be split if the dispute arises. A well-structured fee plan helps prevent sticker shock later.

• Confidentiality vs transparency: decide early how public or private you want the process to be, especially if the project touches sensitive client information.

• Post-award considerations: understand how the award can be enforced in Arkansas courts, and whether there are any local nuances to consider in your jurisdiction.

Practical tips for Arkansas projects

• Choose the right arbitrator: prioritize someone with real-world construction experience, ideally with knowledge of the type of project you’re delivering—industrial, commercial, or heavy civil.

• Consider a panel: for recurring disputes or large projects, a panel of two or three arbitrators can balance viewpoints and keep decisions fair, especially on technical points.

• Use established rules: AAA or JAMS offer well-known frameworks that contractors and owners alike trust. They provide predictable timelines and documented processes.

• Draft smart clauses: when you’re setting up a contract, include a clear arbitration clause with details on the seat, governing rules, permitted discovery, and how the award will be paid and enforced.

• Document thoroughly: keep good records—change orders, submittals, correspondence, site diaries. The better your documentation, the smoother the arbitration process will be.

• Leverage industry standards: use well-known construction standards and contract forms (like AIA documents or consensusDOCS) to minimize ambiguities that could become dispute points later.

• Learn from every dispute: even if you win or settle, review what triggered the dispute to tighten up future contracts and field practices.

A few useful analogies and reminders

• Arbitration is like hiring a seasoned foreman for a white-collar dispute: someone who knows the material, the crews, and the realities of a job site, and who can read between the lines of a claim.

• Think of the award as the final word, not a suggestion—other than a narrow set of exceptions, the decision sticks.

• It’s not a magic wand. Arbitration can resolve disputes faster and with less expense, but you still need solid evidence, clean contracts, and practiced presentation.

A closing thought

In Arkansas, an arbitration clause isn’t just a checkbox on the contract form. It’s a practical tool that reflects how the industry actually works on the ground: moving fast when the weather, the budget, or the schedule demands it; preserving working relationships; and keeping projects from spiraling into costly, drawn-out battles. If you’re on a job that involves cranes, concrete, and subcontractor networks, understanding arbitration can save time, protect your interests, and keep the project moving forward.

If you ever find yourself in a dispute on a construction project, remember this: you’re not surrendering control—you’re choosing a specialized, neutral investigator who helps you get to a fair resolution with less noise and more clarity. And that can be a relief—especially when you’re trying to keep a complex Arkansas project on track, from kickoff to closeout.