When a commercial roofing project involves a disagreement, the roofing contract often determines how the dispute will be handled. Many roofing agreements include mediation or arbitration clauses that explain how the property owner and contractor must attempt to resolve conflicts.
These clauses are designed to provide a structured process for handling disagreements without immediately going to court. Understanding these provisions helps commercial property owners know their rights and responsibilities before signing a roofing contract.
What Is a Mediation Clause in a Roofing Contract?
A mediation clause requires the parties to attempt to resolve a dispute through mediation before pursuing other legal options.
Mediation involves a neutral third party called a mediator who helps both sides communicate, identify the issues, and negotiate a possible solution.
The mediator does not make a final decision. Instead, the mediator helps the parties reach a voluntary agreement.
In a roofing dispute, mediation may address issues such as:
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Disagreements over project costs
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Delayed completion dates
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Roofing workmanship concerns
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Warranty disputes
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Scope of work disagreements
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Payment disputes
The goal of mediation is to find a solution that both parties accept without the time and expense of litigation.
What Is an Arbitration Clause in a Roofing Contract?
An arbitration clause requires disputes to be resolved through arbitration instead of traditional court proceedings.
During arbitration:
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Each party presents evidence and arguments
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A neutral arbitrator reviews the dispute
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The arbitrator makes a decision called an award
Unlike mediation, arbitration usually results in a decision by the arbitrator rather than a voluntary agreement between the parties.
Construction contracts often include arbitration provisions because disputes involving roofing systems can involve technical issues requiring industry knowledge and specialized review.
Difference Between Mediation and Arbitration
The main difference is who makes the final decision.
Mediation
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A neutral mediator helps both parties negotiate
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The parties control the final outcome
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Usually less formal than arbitration
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Focuses on reaching an agreement
Arbitration
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A neutral arbitrator hears both sides
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The arbitrator typically makes the final decision
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More structured than mediation
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May be binding depending on the contract terms
Some roofing contracts include both processes, requiring mediation first and arbitration if mediation does not resolve the dispute.
Why Are These Clauses Included in Roofing Contracts?
Roofing projects can involve many potential disagreements, including:
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Whether repairs or replacement are required
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Whether additional work was authorized
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Whether materials meet contract specifications
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Whether leaks resulted from installation problems
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Whether payments are owed
A dispute resolution clause gives both parties a predictable process for addressing these issues.
For contractors, these clauses may reduce the risk of lengthy court disputes.
For property owners, they may provide a faster way to address project problems.
What Should Property Owners Review in a Dispute Resolution Clause?
Before signing a roofing contract, commercial property owners should review:
Required Process
The contract should explain whether the parties must:
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Attempt negotiation first
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Complete mediation before arbitration
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Proceed directly to arbitration
Who Selects the Mediator or Arbitrator?
The agreement may explain:
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How the neutral party is selected
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Required qualifications
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Whether industry experience is required
Location and Costs
Owners should understand:
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Where the process will occur
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How fees are divided
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Who pays arbitration costs
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Whether attorney fees may be recovered
Binding or Non-Binding Arbitration
The contract should clearly state whether the arbitration decision is final and enforceable.
How Do These Clauses Affect Insurance-Funded Roofing Projects?
Insurance-funded roofing projects can create additional disputes involving:
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Scope of damage
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Repair estimates
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Replacement costs
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Insurance payments
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Contractor obligations
A mediation or arbitration clause may determine how disagreements between the property owner and roofing contractor are handled.
However, these clauses generally do not replace the insurance claim process. Coverage decisions between the property owner and insurance company are separate from contract disputes with the roofing contractor.
Importance of Written Documentation
Strong documentation is critical if a roofing dispute occurs.
Property owners should maintain:
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Signed roofing contract
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Change orders
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Estimates
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Invoices
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Inspection reports
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Photos and videos
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Emails and written communications
Clear records help both sides understand what was agreed upon and what work was completed.
Frequently Asked Question
What does a mediation or arbitration clause mean in a roofing contract?
A mediation or arbitration clause explains how disputes between a property owner and roofing contractor will be resolved. Mediation uses a neutral person to help both sides reach an agreement, while arbitration involves a neutral arbitrator who reviews the dispute and makes a decision. These clauses help create a predictable process for handling roofing disagreements involving costs, workmanship, payments, warranties, or project responsibilities.
Commercial property owners should carefully review dispute resolution clauses before signing a roofing contract to understand how potential conflicts will be handled.
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