What dispute resolution methods are typically required before litigation under A201?

• A. Prepare for litigation directly, with mediation as optional.
• B. Mediation and arbitration, with arbitration as final resolution and litigation as a last resort if allowed.
• C. Arbitration only, with no mediation.
• D. Mediation only, no arbitration.

Answer: (B)

The contracts under AIA A201 use a two-step dispute resolution path before any court action: first mediate to try to settle the dispute, then submit the unresolved dispute to arbitration for a final, binding decision. Litigation is only a fallback if the contract allows it in certain limited circumstances. This structure is designed to encourage settlements, keep disputes out of court, and provide a quicker, more private resolution through arbitration. That makes the option describing mediation followed by arbitration, with arbitration as the final step and litigation as a last resort, the best fit.