California IDEX Practice Exam

According to ASID contract agreements, how are disputes in commercial construction typically resolved?

1. Arbitration

2. Mediation

3. Litigation

4. Submission to design review board

The correct answer is: Mediation

The correct answer for how disputes in commercial construction are typically resolved according to ASID contract agreements is arbitration. Arbitration is a process where an impartial third party, the arbitrator, is appointed to resolve disputes outside of the court system. This method is favored in commercial construction because it is usually faster and less formal than litigation, allowing for a more efficient resolution of conflicts that may arise during the project. Additionally, arbitration can be tailored to the specific needs of the parties involved, making it a flexible option for dispute resolution in the construction industry. While mediation is a popular alternative for resolving disputes, it is primarily a collaborative process aimed at reaching an agreement rather than a binding resolution, which is typically preferred in formal contract disputes. Litigation involves taking a dispute to court, which can be time-consuming and costly, making it less desirable in commercial contracts where efficiency is key. Submission to a design review board might be relevant in specific situations, but it does not represent a standard resolution method for disputes under ASID contracts.