{"id":3417,"date":"2026-10-25T03:46:41","date_gmt":"2026-10-25T03:46:41","guid":{"rendered":"https:\/\/www.lawayala.com\/resources\/resources-construction-payment-disputes-florida\/resources-construction-contract-arbitration-or-court-florida\/"},"modified":"2026-11-06T08:31:11","modified_gmt":"2026-11-06T08:31:11","slug":"resources-construction-contract-arbitration-or-court-florida","status":"publish","type":"page","link":"https:\/\/www.lawayala.com\/resources\/resources-construction-payment-disputes-florida\/resources-construction-contract-arbitration-or-court-florida\/","title":{"rendered":"Construction Contract Arbitration Florida Explained"},"content":{"rendered":"\n
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Construction Litigation | Tampa Bay and Hillsborough County<\/p>

Construction Contract Arbitration in Florida, Explained<\/h1>

How arbitration clauses shape construction disputes, and what contractors and subcontractors should expect when a contract sends a dispute out of court. Ayala Law PA focuses on business and construction litigation.<\/p>

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By Eduardo A. Maura \u00b7 Published October 24, 2026<\/p>\n\n

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Construction contract arbitration in Florida moves a dispute out of the courtroom and into a private hearing before an arbitrator. Whether that happens depends on the wording of your contract. This page explains what an arbitration clause changes, how the process runs, and which contract terms to review first. Ayala Law PA focuses on business litigation, including construction litigation, and handles matters in Florida courts and in arbitration.<\/p>\n

What an arbitration clause does to a construction contract dispute<\/h2>\n

An arbitration clause decides where a dispute is heard. It does not decide who is right. The clause is a promise, made in writing, to send certain disagreements to an arbitrator instead of a judge and jury.<\/p>\n

These clauses show up in many construction documents. You may see them in prime contracts, subcontracts, purchase orders and standard form agreements. A clause can cover every dispute under the contract, or only certain types of claims.<\/p>\n

Florida law starts from a clear rule. An agreement in a written record to arbitrate existing or future disputes is valid and enforceable, unless a ground exists to revoke any contract. Fla. Stat. \u00a7 682.02<\/a> states that rule. Federal law also protects written arbitration provisions in contracts involving interstate commerce. 9 U.S.C. \u00a7 2<\/a> sets out that rule for written arbitration provisions in maritime transactions and in contracts evidencing a transaction involving commerce.<\/p>\n

The wording of the clause controls its reach. Read the scope language closely before you assume a dispute belongs in arbitration.<\/p>\n\n

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Not sure what your next step is?<\/h3>

Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a consultation<\/a><\/div>
Schedule a consultation<\/a><\/div><\/div>\n<\/div>\n

How does arbitration work in construction?<\/h2>\n

Arbitration follows a set sequence, usually started by a written demand. One party sends notice of the dispute. The parties then choose or appoint an arbitrator, exchange documents and hold a hearing. The arbitrator then issues a decision called an award.<\/p>\n

The clause often names the rules that apply. The American Arbitration Association publishes recommended construction clause language and construction arbitration procedures<\/a>. If your contract names those rules, the procedure follows them.<\/p>\n

Arbitration is private. Hearings and filings are not usually open to the public the way a court case is. That privacy is one reason parties choose it. Arbitration can also be faster or slower than court, depending on the case, the rules and the schedules of the people involved. No one can promise a difference in time or cost.<\/p>\n

Court review of an award is limited. Upon a party’s motion, a court must vacate an arbitration award in listed cases, such as one procured by fraud or corruption, or where the arbitrator exceeded the arbitrator’s powers. Fla. Stat. \u00a7 682.13<\/a> lists those grounds. A motion to vacate must be filed within 90 days after the movant receives notice of the award, or of a modified or corrected award. If the motion claims the award was procured by corruption, fraud or other undue means, the 90 days run from when that ground is known or reasonably should have been known.<\/p>\n

How Florida courts in Hillsborough County handle construction suits<\/h2>\n

A construction suit without an enforceable arbitration clause goes to court. Florida’s venue rule limits where it can be filed. An action must be brought in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located. Fla. Stat. \u00a7 47.011<\/a> states that rule, with an exception for actions against nonresidents.<\/p>\n

For many Hillsborough County disputes, the case will move through familiar stages. These include pleadings, discovery, motions and, in many cases, mediation before trial. Florida law requires a court, on one party’s request, to refer many civil actions for money damages to mediation, provided the requesting party is willing and able to pay the mediation costs or the costs can be equitably divided between the parties. Fla. Stat. \u00a7 44.102<\/a> provides that rule: on one party’s request, a court must refer many civil actions for money damages to mediation, provided the requesting party is willing and able to pay the costs or the costs can be equitably divided between the parties. Fla. Stat. \u00a7 44.102<\/a> reads: “(2) A court, under rules adopted by the Supreme Court: (a) Must, upon request of one party, refer to mediation any filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless: 1.” The same section excludes actions where the parties have agreed to binding arbitration.<\/p>\n

A court can also enforce an arbitration clause. If a party sues anyway, the other side can ask the court to order arbitration. Under Fla. Stat. \u00a7 682.03<\/a>, the court may not refuse to order arbitration because the claim lacks merit. The court must also stay, on just terms, any judicial proceeding that involves a claim alleged to be subject to the arbitration while the arbitration question is decided.<\/p>\n

Reading the contract: dispute clause, change orders, payment terms and retainage<\/h2>\n

Start with the dispute resolution section. It may require arbitration, litigation, mediation first, or a mix of steps. Check whether it applies to all claims or only some.<\/p>\n

Next, review the notice and change order terms. Many construction contracts require written notice within a set period, or written approval before extra work begins. Missing those steps can weaken a claim, even when the work was done.<\/p>\n

Payment terms and retainage come next. Disputes over withheld payments often start here. Read what the contract says about payment applications, withholding and when retainage is released. Those terms often shape what the dispute is really about, and they help decide where it will be heard.<\/p>\n

Scope of work matters too. Many fights turn on whether the disputed work falls inside the contract. Compare the scope description with the plans, specifications and the work actually performed.<\/p>\n

A clause can also be challenged as unfair. The Florida Supreme Court held in Basulto v. Hialeah Automotive<\/a> that a court needs both procedural and substantive unconscionability. Both the procedural and substantive aspects of unconscionability must be present, although not necessarily to the same degree, and both should be evaluated interdependently rather than as independent elements (Basulto v. Hialeah Automotive<\/a>).<\/p>\n

How long does a contractor have to warranty his work in Florida?<\/h2>\n

The warranty period comes from the written contract. The deadline to sue over construction work is a separate question, set by statute. Those two clocks often do not match.<\/p>\n

For actions founded on the design, planning or construction of an improvement to real property, Florida law provides a four-year period. That period generally runs from the earliest of a temporary certificate of occupancy, a certificate of occupancy, a certificate of completion, or abandonment of unfinished construction. For latent defects, the time runs from discovery, or from when discovery should have occurred with due diligence. Even then, the action generally must be started within seven years after that date.<\/p>\n

A contract cannot shorten that period. Under Fla. Stat. \u00a7 95.03<\/a>, a contract provision that sets a shorter time to begin an action than the statute allows is void.<\/p>\n

Keep the completion, acceptance and defect dates in your file. Those dates can control when the statutory clock starts.<\/p>\n

What disputes cannot be resolved by arbitration?<\/h2>\n

Arbitration reaches only the claims the parties agreed to send to it. A narrow clause can leave other claims in court. Read the clause for words like “arising out of” or “relating to” the contract, because those words affect the reach.<\/p>\n

A court decides whether an arbitration agreement exists and whether a dispute falls under it. Fla. Stat. \u00a7 682.02<\/a> assigns that question to the court. An arbitrator decides certain questions, such as whether a condition precedent has been met.<\/p>\n

Parties who did not sign the clause raise a separate issue. A third party, a surety or a related company may not be bound the same way. How those claims are handled depends on the contract and the facts.<\/p>\n

Some claims also depend on whether a written contract covers the same subject. Florida courts have said that where an express contract covers the same subject matter, claims arising from that relationship will not support unjust enrichment. Williams v. Johnson<\/a> quotes that rule.<\/p>\n

Lien foreclosure is part of the construction litigation work Ayala Law PA handles. Lien matters can raise court-filing questions even when the underlying contract has an arbitration clause. Review those questions with the full contract file.<\/p>\n\n

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Not sure what your next step is?<\/h3>

Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a consultation<\/a><\/div>
Schedule a consultation<\/a><\/div><\/div>\n<\/div>\n

Does one side usually win in arbitration?<\/h2>\n

No one can say how a particular arbitration will turn out. The result depends on the contract language, the records, the testimony and how the arbitrator applies the governing law.<\/p>\n

Certain factors tend to shape construction awards. Notice compliance matters. Written change approvals matter. Payment records matter. So does the scope the contract actually covers. A party with clear documents on these points is in a stronger position than one relying on memory.<\/p>\n

Ayala Law PA does not promise or predict results in any matter. Any review of your dispute should start with your documents, not with assumptions about how it will end.<\/p>\n

How the firm handles construction contract disputes in Florida courts and arbitration<\/h2>\n

Ayala Law PA focuses on business litigation. That includes contract disputes, construction litigation, shareholder and partnership disputes, real estate litigation and international trade litigation. The firm handles matters in Florida courts and in arbitration.<\/p>\n

Construction litigation at the firm includes contractor and subcontractor disputes, lien foreclosure and construction contract fraud. Eduardo A. Maura is the lawyer responsible for this page. The firm’s office is at 1646 W Snow Ave, Tampa, FL. The firm represents businesses in Tampa and Hillsborough County from its Tampa office. Ayala Law PA’s office is at 1646 W Snow Ave in Tampa, Florida, and from there the firm serves businesses in Tampa and Hillsborough County.<\/p>\n

For more background, read our Florida construction litigation guide<\/a>.<\/p>\n

Frequently asked questions<\/h3>
Does an arbitration clause decide who wins?<\/summary>

No. It decides where the dispute is heard. The merits are decided in that forum.<\/p><\/details>

Can a Florida court order arbitration?<\/summary>

Yes. A court can order arbitration when a valid agreement exists, and it can stay a lawsuit while that question is decided.<\/p><\/details>

Is there one deadline for every construction claim?<\/summary>

No. The start date depends on the facts of the work, such as when the authority having jurisdiction issued a certificate of occupancy or a certificate of completion.<\/p>

If a withheld payment, a disputed change order or a warranty problem has you reviewing an arbitration clause, call Ayala Law PA at (305) 570-2208 or contact the firm<\/a> to discuss how that clause applies to your contract.<\/p><\/details><\/article>\n