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.
New Mexico Submission to Arbitration of Dispute between Building Construction Contractor and Owner: Arbitration is a widely used alternative dispute resolution method in the construction industry, serving as an effective means to resolve conflicts between building construction contractors and owners in New Mexico. In this process, both parties agree to submit their dispute to an impartial third party, known as an arbitrator, who will hear the evidence and make a binding decision. There are several types of New Mexico submission to arbitration, each designed to address specific issues that may arise during the construction process. These include: 1. Contractual Disputes: This type of arbitration focuses on conflicts related to breach of contract, non-payment, changes in scope, or any issues that may arise from the written agreement between the contractor and owner. By submitting the dispute to arbitration, both parties can avoid costly litigation and instead benefit from a faster and more cost-effective resolution. 2. Defects and Quality Issues: In cases where there are disputes regarding construction defects, poor workmanship, or failure to meet agreed-upon quality standards, arbitration can be an effective method to resolve these disputes. An arbitrator, with expertise in construction matters, can assess the situation, including reviewing relevant documents, visiting the construction site, and conducting any necessary tests to determine the extent of the defects and allocate responsibility. 3. Payment Disputes: One common issue in construction projects is payment disputes between contractors and owners. In these cases, arbitration can provide a fair and efficient resolution. The arbitrator will review the payment terms outlined in the contract, assess the work completed, consider any change orders, and determine whether the amount claimed by the contractor is justified. They will then make a binding decision on the appropriate payment to be made. 4. Delay and Performance Issues: Construction projects often face challenges related to project delays, disputes over the schedule, or claims of poor performance. These issues can significantly impact the project's timeline and budget. Through arbitration, parties can present their arguments and evidence to an arbitrator who will evaluate the situation objectively, considering factors such as unforeseen circumstances, contractor responsibilities, and compensate delays, to reach a fair and impartial decision. 5. Arbitration Agreements: In New Mexico, it is common for construction contracts to include arbitration clauses. These clauses require parties to submit any disputes to arbitration rather than pursuing litigation. Including an arbitration agreement in the contract allows construction professionals and owners to proactively plan for potential disputes and choose a neutral arbitrator who possesses relevant expertise in construction matters. In conclusion, New Mexico submission to arbitration offers a voluntary and efficient method for resolving disputes between building construction contractors and owners. By opting for arbitration, the parties can avoid the delays, costs, and uncertainty associated with traditional litigation. Whether the dispute relates to contract breaches, defects, payment issues, delays, or performance concerns, arbitration provides a fair and structured process for reaching a binding resolution.
