Dictionary of Procurement Terms

A not-forprofit organization that provides resources for Alternative Dispute Resolution (ADR).

1. A process by which a dispute between parties is presented to one or more disinterested parties (arbitrators or neutrals) for a decision. The contending parties agree to accept this decision without further appeal. Also known as binding arbitration. 2. The resolution of a conflict between parties by a party removed from the dispute. 3. A form of Alternative Dispute Resolution.

Specific to Alternative Dispute Resolution (ADR), binding arbitration involves the presentation of a dispute to an impartial or neutral individual or panel for issuance of a binding decision. The parties can usually choose their arbitrators. See also: Arbitration.

n alternate dispute resolution (ADR) process frequently referred to as “med-arb.” When an impasse is reached in mediation, a neutral party is authorized by the parties to the contract to issue a binding opinion on the cause of the impasse or the remaining issues in dispute.