There are some statistics worth noting right off the bat about construction companies and litigation versus insurance companies. The number are eye popping because they are in the hundreds of millions or billions of dollars. And the lawyers that handle this business likely get paid a great commission. The statistics are:
- In 2015, the American Arbitration Association administered 551 construction industry cases with claims of $500,000 or more. The largest construction case was for $2.6 billion, while the largest arbitration case was $96 million.
- Alternative dispute resolution is the preferred conflict-management process in the construction industry. The median time frame from filing to award for 2015 construction arbitration cases was just 232 days.
- According to the American Arbitration Asso