The American Arbitration Association (AAA) revised its Construction Industry Rules and Mediation Procedures (“AAA Construction Rules”) effective July 1, 2015. The changes were intended to streamline the dispute resolution process. The major changes included the following:

• An increase in the dollar threshold for “Fast Track” cases, from $75,000 to $100,000. Disputes involving more than $100,000 in claims will be placed onto the slower “regular” arbitration schedule. The upper limit on claims, which permits a Fast Track case to be resolved by submission of documents only, has been increased from $10,000 to $25,000.
• A mediation step for all cases with claims or counterclaims over $100,000. Mediation must take place concurrently with arbitration proceedings to avoid delay.
• Procedural changes to consolidation and joinder of parties, with time frames and filing requirements.
• New preliminary hearing rules to provide more structure and organization at the outset of the case.
• Rules governing information exchange that give arbitrators more control over the scope and magnitude of the information disclosure process, including the exchange of electronically stored information.
• Availability of emergency relief, such as injunctions (for contracts entered into on or after July 1, 2015).
• Heightened enforcement powers of the arbitrator, including authority to issue protective orders, sanctions, and other orders to enforce compliance with the Rules.
• Availability of dispositive motions, such as summary judgment, to “narrow the issues in a case.”

Given that mandatory arbitration clauses are becoming the norm in construction contract dispute resolution provisions, it behooves contractors to understand the implications of these changes in the AAA Construction Rules. If your contract calls for dispute resolution using AAA Construction Rules or you are considering using AAA to resolve a dispute, you and/or your counsel should carefully review the AAA Construction Rules.