Question:

What to expect: arbitration with house builder?

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Just built a home and builder failed to have me sign any change orders for overruns, as required per his contract. I owe him $36K of which I was never told about before.

How does arbitration proceed? Aren't builders require to follow their contracts? Thank for any answers...

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  1. Arbitration is usually a binding agreement hashed out by a neutral third party.  It is about being fair without having to go in front of a judge.  

    You will both explain the facts as you know them.  The builder will be asking for the $36,000 and you will be asking for them to hold them to their contract.  A judge is more likely to follow the letter of the law whereas the arbitrator will be more into doing what is fair.  

    If you said OK to putting in granite counters, even verbally and now expect not to pay for them, you are going to be disappointed.  If the 'overruns' are for materials that were in the original contract and they never informed you that these materials now cost more, then expect the arbitrator to find in your favor...

    good luck!

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