The method of resolving disputes typically stipulated in construction contracts is:

Disputes in construction contracts are often resolved through arbitration due to its structured process, expertise in construction-related issues, and binding nature. Arbitration allows for a neutral third party, known as an arbitrator, to review the evidence, listen to the arguments from both sides, and make a decision that is usually enforceable in court. This is particularly advantageous in construction, where disputes can be complex and require specialized knowledge.

Arbitration is often preferred because it tends to be faster and less formal than litigation, thus providing a more efficient resolution process. Furthermore, many construction contracts explicitly include arbitration clauses, indicating that parties agree in advance to settle disputes through this method rather than resorting to court proceedings.

While mediation and negotiation are alternative dispute resolution methods focused on collaborative problem-solving and reaching mutual agreements, they do not provide a binding decision. Litigation, on the other hand, involves court proceedings that can be lengthy, expensive, and public, making it less appealing for parties seeking to resolve their disputes amicably and efficiently. Therefore, arbitration stands out as the method most typically stipulated in construction contracts for dispute resolution.