Disputes arising out of or related to the Contract are subject to:

Mediation followed by arbitration is a widely accepted approach to dispute resolution in construction contracts. This method combines both mediation and arbitration, allowing the parties to first attempt resolving their disputes through mediation, which is a collaborative and informal process. Mediation enables parties to communicate directly and hopefully reach a mutually agreeable solution with the assistance of a neutral third party.

If mediation does not yield a satisfactory resolution, the process then transitions to arbitration, where a neutral arbitrator makes a binding decision on the dispute. This two-step approach is advantageous because it promotes resolution through dialogue and compromise first, potentially saving time and resources. If mediation fails, arbitration provides a more formal mechanism to resolve the dispute efficiently and usually quicker than going through litigation.

In contrast, the other options present alternative paths for resolving disputes, but they either skip mediation or introduce litigation directly after arbitration, which may not be necessary or efficient. Thus, choosing the combination of mediation followed by arbitration effectively captures both the spirit of cooperation and the need for a binding resolution if negotiations fail.