AIA dispute resolution ladder: initial decision → mediation → binding step

One-line orientation

For claims that require an initial decision, the usual AIA sequence is: initial decision, required mediation, then the binding method chosen in the agreement.

Key points

• Step 1 — Initial Decision (IDM):
  • Scope: most owner-contractor claims under A201 Article 15 begin with a written IDM decision.
  • Default IDM: architect, unless the parties name someone else.
  • Exceptions: check the edition and claim type, especially after the correction period.
  • B101 path: owner-architect disputes follow B101 Article 8 instead of the A201 owner-contractor IDM process.
• Step 2 — Mediation (required, non-binding): Mediation is a mandatory prerequisite before the binding step. Mediation is confidential and non-binding; a neutral facilitator helps the parties negotiate but does not impose an outcome. AIA documents use timing windows after mediation is demanded before a binding step may proceed, so check the specific edition if the question asks for a day count.
• Step 3 — Binding resolution (arbitration OR litigation): If mediation does not resolve the dispute, the parties proceed to whichever binding method they selected in their agreement — arbitration or litigation, not both. The choice is made at contract execution.
• IDM role in practice: The IDM reviews the claim, may request additional evidence, and issues a written decision. A party that disagrees may demand mediation within the time allowed. The IDM’s decision stands if neither party demands further process.

AIA dispute-resolution ladder

Most owner-contractor claims escalate through each step before any binding decision.

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Arbitration and litigation are mutually exclusive alternatives elected at contract execution — not sequential stages, and arbitration does not precede litigation.

Shown: the A201 owner-contractor claims path (Article 15).

Confusions / comparison

Stage	Binding?	Who decides	Purpose
Initial Decision (IDM)	No — subject to challenge by either party	IDM (default: architect)	First review for claims that require IDM decision; condition precedent to mediation
Mediation	No — parties may walk away	Neutral facilitator (does not decide)	Confidential negotiation; required before binding step
Arbitration	Yes — if elected in agreement	Neutral arbitrator(s)	Final private adjudication
Litigation	Yes — if elected in agreement	Court / judge	Final public adjudication

Related

→ pp-mediation-vs-arbitration-vs-litigation (this module): deep contrast of the three methods · pp-termination-suspension (this module): separate exit path when a party ends the contract rather than disputes it · ProPractice: AIA A201 general conditions overview.