The Construction Arbitration Board

The Construction Arbitration Board will arbitrate disputes involving any matter related to building construction utilizing procedures which comply with the Wisconsin Uniform Arbitration Act. The procedure requires the parties at the submittal of the dispute, to sign an Arbitration Agreement under which they agree to be bound by the decision. The MBA's trust account is used to escrow disputed sums pending compliance with the decision. These procedures provide that the ultimate decision is enforceable in court by either party.

The Board will only arbitrate a construction dispute where there is a written or an oral contract between the parties. The Board does not process warranty complaints involving homes covered by an insured warranty program. However, it does process contractual complaints on those homes, which are not covered under an insured warranty.

The Construction Arbitration Board also handles disputes between the building and subcontractors or suppliers when the dispute concerns technical performance of the contract.

THE OPERATION OF THE BOARD

The Board consists of volunteers, made up of general contractors, subcontractors and suppliers of the major trades, along with several attorneys. The diverse membership provides specialized expertise and assures a range of opinions in the decision-making process. Board members are volunteers who make a considerable time commitment to serve as inspectors and arbitrators. They receive no compensation or expense allowance.

The number and selection of the arbitrators/inspectors in each dispute is decided by the Board, depending on the complexity of the dispute, the areas of technical expertise required, and the proximity to the building site (on-site inspections are common). While the composition of the Board changes slightly from year to year, the dedication of the volunteers is such that most inspectors have over a decade of experience with the Board. In its history, the Board has arbitrated more than 1200 disputes.

The Board's forte is arbitrating contractual disputes which, because of the custom building nature of this area, are the most common. The use of the Board's expertise generally eliminates the need to pay for expert witnesses as would be required in a court case or even to hire an attorney, although either party may do so.

TYPES OF ARBITRATIONS

Involuntary Arbitrations: Every general contracting member (builder/remodelor) of the MBA and every subcontractor/supplier member of the MBA (associate) who contracts directly with the buyer for construction services agrees, under the MBA By-laws, to submit to arbitration if requested by the buyer during the customary one-year warranty period. The MBA has the authority to compel members to sign an Arbitration Agreement upon threat of expulsion and, likewise, on failure to perform, to expel.

Voluntary Arbitrations: The Board also arbitrates disputes between non-members of the MBA and buyers. Disputes referred by the courts are often resolved by the MBA in this manner. Voluntary arbitrations also can be processed involving MBA members and buyers provided both parties agree (such as after expiration of warranty periods).

FEES

The fee for arbitration under the involuntary or voluntary procedure is $750 for each party to the dispute if the dispute involves an MBA member. The fee is $2,000 for each party if an MBA member is not involved.

CASE PROCESSING TIME

Excluding the Communication/Conciliation Stage (which cannot be less than 40 days in an involuntary arbitration unless waived by the parties), the Board requires a minimum of 21 days to assign inspectors and arrange an on-site inspection prior to the hearing. Since the Board normally meets at least monthly, a decision can usually be reached in two to six weeks. Thereafter, special conditions may extend the decision-making period. Approxi-mately 60 days is required for compliance, barring weather delays or material unavailability.

FORMS

Arbitration Agreement