Glossary
Dispute resolution clause
A contract provision specifying how disagreements between the parties — including scope or payment disputes — will be resolved, such as through mediation, arbitration, or litigation, and in what jurisdiction.
A contract provision specifying how disagreements between the parties — including scope or payment disputes — will be resolved, such as through mediation, arbitration, or litigation, and in what jurisdiction.
Example
An MSA's dispute resolution clause requires both parties to attempt mediation before either can file a lawsuit, and specifies that any arbitration will take place in the agency's home state.
Why it matters for agencies
Most scope disagreements never reach this clause — they're resolved through a change order conversation. But its presence, and which venue and process it names, matters if a disagreement over unpaid change-order work ever escalates past informal negotiation.