An arbitration clause in a contract is a statement of how any disputes between you and the contractor will be resolved. The clause may state that any disputes will be resolved in court. A better alternative would be to use a clause stating that disputes will be resolved through a professional arbitration negotiator. The contractor’s standard contract will probably include some kind of arbitration clause. You should read it carefully and negotiate a change if you are not willing to agree to the stated arbitration procedure.

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If you found this tip helpful, you might also want to read this:
Introduction to Contracts
Contract Checklist
How to Handle Disagreements With your Contractor