A submission agreement is a contract in which the parties agree to submit a particular existing controversy to arbitration and to abide by the award of the arbitrator or arbitration panel. The agreement is governed by the rules applicable to contracts generally, and consideration is supplied by the mutual covenants of the parties to be bound by the award rendered.
In Arkansas, the submission to arbitration of disputes between building construction contractors and owners is a legal process used to resolve conflicts that may arise during construction projects. Arbitration serves as an alternative to formal litigation and provides a more cost-effective and efficient means of resolving disputes. The Arkansas submission to arbitration of disputes involves the voluntary agreement of both parties — the building construction contractor and the owner — to bring their disagreement before an impartial third party called an arbitrator. This process is governed by the Arkansas Uniform Arbitration Act, which outlines the procedures and guidelines that must be followed. Arbitration offers several advantages over traditional courtroom litigation. It is usually a quicker process, leading to more timely resolutions of disputes, thus minimizing project delays. It is also more flexible, allowing the parties to choose the arbitrator, determine the schedule, and agree on the rules that will govern the arbitration process. Additionally, arbitration can be less formal and more confidential than a court proceeding, allowing the parties to maintain a better working relationship. The types of Arkansas submission to arbitration for disputes between building construction contractors and owners can vary depending on the terms outlined in the construction contract. Some common types include: 1. Mandatory Arbitration Clause: This type of clause requires both the contractor and the owner to submit any disputes arising from the construction project to arbitration. By including this provision in the contract, the parties agree to give up their right to pursue a legal action in court. 2. Voluntary Arbitration Agreement: In some cases, the contractor and the owner may mutually decide to submit their dispute to arbitration after it arises. This agreement can be reached during the initial negotiation phase or after the conflict arises, allowing both parties to avoid litigation. 3. Fast-Track Arbitration: This type of arbitration is used when the parties desire a quick resolution of their dispute. It generally involves a condensed timeline for hearing arguments, analyzing evidence, and reaching a decision. 4. Binding vs. Non-binding Arbitration: In binding arbitration, the decision rendered by the arbitrator is final and enforceable under the law. Non-binding arbitration, on the other hand, allows either party to reject the decision and proceed with litigation if they are dissatisfied with the outcome. The Arkansas submission to arbitration process begins with the selection of an arbitrator. This can be done in various ways, including mutual agreement, through a pre-selected list, or by utilizing a neutral arbitration organization. Once the arbitrator is chosen, they will set a hearing date and establish the rules and procedures that will govern the arbitration. During the arbitration hearing, both the contractor and the owner will present their arguments and evidence, which may include witness testimonies, documents, and expert reports. The arbitrator will carefully consider all the presented information and issue a decision, generally referred to as an arbitration award. This decision is legally binding if the arbitration is of the binding nature. In conclusion, the Arkansas submission to arbitration of disputes between building construction contractors and owners provides an alternative dispute resolution mechanism that offers efficiency, flexibility, and a more confidential process compared to traditional litigation. The different types of arbitration available allow parties to tailor the process to their specific needs and preferences, ultimately promoting fair and timely resolutions of construction-related disputes.
