How are disputes typically resolved in contract administration?

Disputes in contract administration are typically resolved through a structured process that involves negotiating, mediating, arbitrating, or litigating. Each of these methods serves a specific purpose in the resolution of conflicts that arise during the contract's life cycle.

Negotiation allows the parties involved to directly communicate and attempt to reach a mutually agreeable solution without outside intervention. This approach is often preferred for its cost-effectiveness and the potential to preserve relationships between the parties.

Mediation involves a neutral third party who facilitates discussions and helps the conflicting parties to find common ground. The mediator does not make a decision for the parties but guides them toward a resolution that they can both accept.

Arbitration is a more formal process where an arbitrator reviews the evidence and arguments presented by both parties and makes a binding decision. This method is often faster and less expensive than litigation and can be a preferred route for parties looking to avoid the complexities of court proceedings.

Litigation is the process of taking a dispute to court, where a judge will render a decision. It is typically the last resort due to its time-consuming and costly nature but can be necessary in more serious disputes where other resolution methods fail.

The other options do not provide a comprehensive approach to dispute resolution. Informal discussions