Decide how to disagree

You agree on the price. You agree on the work. You agree on Monday.

You leave the paragraph about disputes for later.

That is a business decision, too.

Imagine you hire a contractor to renovate your office. You accept the bid. The crew shows up. A week later, someone sends over a longer contract with an arbitration clause.

Nobody signs it. Everyone keeps working.

Then the project stalls. You want your deposit back. The contractor wants the balance.

Before you can fight about the renovation, you fight about where the fight belongs.

I want business owners to settle that second question while they still agree on the first one: doing business together.

A dispute resolution provision deserves the same attention as the price and the deadline. It sets out the process you intend to use when a conversation stops solving the problem.

That might mean a required discussion between the owners. It might mean mediation, where a neutral person helps the parties try to reach a settlement. It might mean arbitration, where a private decision-maker resolves the dispute, or litigation in court.

These are different choices. Listing the words in a paragraph does not create a useful plan.

Decide which steps come first. Decide where the process happens. Consider the costs, the size of the likely dispute, and whether anyone might need urgent court relief. Have the language reviewed so the steps work together instead of pointing in different directions.

Then make sure both sides actually agree to it.

Virginia's Supreme Court has rejected an attempt to compel arbitration when the parties already had an oral agreement, and the contractor failed to establish agreement to the additional terms in a later, unsigned form. Starting work did not establish acceptance of those added terms on those facts.

The lesson is not that every unsigned contract fails. The lesson is that sending your preferred terms is not the same as securing agreement to them.

My practical rule is simple:

• Discuss dispute resolution before authorizing work.
• Put the agreed process in the final contract.
• Get that version signed by both sides.
• Keep the completed agreement where you can find it.

If work has already started, address the gap now. Do not quietly add a clause to an invoice and assume the problem is solved. Get help documenting an agreed change.

I would rather review that paragraph before the work starts than argue about it afterward.

A good relationship can survive a disagreement. It should not have to invent the rules in the middle of one.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship. Every case is different, and you should consult a licensed attorney for advice regarding your specific situation.