It's My Construction Contract, I Can Arbitrate Where I Want

Subcontractors know all too well that out-of-state prime contractors and owners often include clauses in construction contracts that require all disputes be resolved in, and subject to the laws of, a state different from where the project is located. These “choice of law” and “forum selection” clauses are often relegated to the ends of contracts and most subcontractors lack the bargaining power necessary to negotiate these terms. This ability to force a smaller subcontractor to fight a lawsuit in another state provides a “home court advantage” and oftentimes presents a hardship to the subcontractor, which ultimately may deprive that party of its “day in court.”