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May 04, 2026
If you are a contractor in Orange County, it’s understandable to feel blindsided by an arbitration clause in your contract with a client. You may not know exactly what your rights are when you are having a legal dispute with a client or a subcontractor. That’s one of the many reasons why it’s important to retain reliable legal help during a situation like this. Construction arbitration in Orange County can be overwhelming, and you should know whether it’s entirely necessary.
As you navigate alternative dispute resolution options, you should consider hiring someone with extensive experience handling construction arbitration cases like yours. California’s arbitration laws can be complex without an Orange County arbitration attorney to walk you through your options. Our firm can bring over two decades of focused experience and knowledge to your case, providing you with a sound legal foundation to build your case upon.
What Contractors Need to Know Before Filing a Claim
If you have a construction arbitration case in Orange County, your case will most likely be handled by the Superior Court of California, County of Orange. More specifically, it will be handled within the Civil Division and will likely take place at the Central Justice Center. Arbitration is common in construction cases, especially ones that involve high-value property. The average cost of a mid-tier home in California is $775,000, which may be seen as high-value.
There are many important details you need to know about your case before you move forward with arbitration. For example, home buyers in California are protected from bearing the cost of construction defects in a new home, according to state law. Additionally, construction contributed $158 billion to the state’s entire GDP of $4 trillion in 2024. The court takes your claim seriously. Here are some of the most significant factors you need to consider:
- Review your contract. It’s entirely possible that mandatory arbitration is not a part of your initial contract. If arbitration is mandatory to resolve a dispute, your contract will likely say whether a private arbitrator will be used or if the American Arbitration Association (AAA) will be involved. Either way, make sure you have a good arbitration lawyer by your side to help guide you through the process.
- Consider the difference. When it comes to resolving a legal dispute, arbitration can be much faster than litigation, but it can be expensive in its own right. Additionally, a decision reached in arbitration can be legally binding with little to no opportunities for an appeal, unlike a court decision.
- Document everything. In legal disputes of any kind, you can never have too much documentation of your claims. Be sure to gather all documentation available to you, including the initial contract, change orders, emails, daily logs, photographs, and correspondence. You will want to build a strong case that defends your position.
- Identify damages. The last thing you want to do is go into arbitration without a plan in place. Assume that the other party does have a plan, and that plan involves proving you wrong. Be sure to identify the exact amount in damages you feel you are owed, and your lawyer can help you make a strategy to convince the arbitrator that you are in the right here.
- Limited discovery. Arbitration may not allow for an extended discovery phase, meaning that you need to be fully prepared with your evidence before you begin the process. You may not have an opportunity to gather additional evidence to prove your claim. The advantages of arbitration can sometimes be overshadowed by the finality of the decision reached by the arbitrator.
FAQs
Who Usually Succeeds in Construction Arbitration?
No single party generally wins more often in construction arbitration. It depends entirely on the strength and validity of your claim. Many times, arbitrators will attempt to make everyone happy by issuing awards to both parties. These damages are usually less than what the plaintiff wants, but more than the respondent offers. This is often known as “splitting the baby.” A skilled contractor can prevail if the arbitrator understands technical construction terms.
How Do I Prepare for an Arbitration Hearing?
The most reliable way to prepare for an arbitration hearing is by gathering the right evidence and preparing a strategy with a lawyer’s help. Be sure to prepare witnesses, draft a clear outline of your case, review the arbitration agreement and your original contract, and submit your documents early to avoid any delays or surprises. Hire an arbitration lawyer to walk you through the process and anticipate any possible setbacks.
What Is the Biggest Issue With Arbitration?
Generally, the biggest issue that individuals tend to have with arbitration is its binding nature combined with systemic bias. Mandatory arbitration can be expensive and prevents individuals from pursuing litigation instead. You may be forced into an agreement that doesn’t help you at all and that you cannot appeal. Even if the arbitrator makes a legal error, you have to abide by their final judgment. This can be upsetting.
How Much Does Construction Arbitration Cost in California?
Construction arbitration can be considerably expensive in California, ranging anywhere from tens of thousands to hundreds of thousands of dollars. This cost comes from the hourly rate of the arbitrator, certain administrative filing fees, and your lawyer’s fees. The costs are usually split between both parties, but that can still lead to a significant expense. The more complex a case is, the longer it will likely take to settle, making it more expensive.
Be Sure to Hire an Arbitration Lawyer
One of the most important factors in your construction arbitration case will be hiring the right lawyer. A good arbitration lawyer can prevent you from being taken advantage of in a situation where you may have very limited options. The last thing you want is to be unprepared for your construction arbitration session. At Engels-Janzen, we can assist you in developing a strong case and make sure your interests are protected. Contact us to speak with someone on our team.
