2024 Construction Arbitration Rules Update

In March 2024, the American Arbitration Association (AAA) updated its Construction Industry Arbitration Rules, introducing two specific revisions that could impact future arbitrations. The revisions relate to consolidation and joinder, as well as arbitrator selection. As we approach the one-year anniversary of these changes, their effects have begun to take shape. Entities or individuals with arbitration provisions in their contracts that select AAA’s Construction Rules should consider the possible effects of these rule changes.

The first change, to Construction Rule R-7, accelerates the timeline for consolidation and joinder requests. Those requests commonly arise in construction disputes involving shared liability between owners, architects, general contractors, and subcontractors. Previously, the Rules permitted parties to request consolidation or joinder within 90 days of AAA notifying the parties that the demand filing requirements have been satisfied. The revised Rule R-7, however, requires all joinder and consolidation requests to be filed with the AAA prior to the appointment of the merits arbitrator. The AAA shall appoint a single arbitrator for the limited purpose of deciding consolidation and joinder requests. Because merits arbitrators are typically appointed between 15 and 45 days after filing (see AAA’s Arbitration Road Map), parties must now file joinder and consolidation requests much more quickly than was the case previously.

The other key change, to Rule R-15, narrows the pool of available merits arbitrators. Rule R-15 now requires that all party-appointed arbitrators be on the AAA National Roster, unless the parties agree otherwise “or AAA determines in its sole discretion that the AAA National Roster of Arbitrators does not have the requested expertise.” Due to this change, a party’s preferred arbitrator, including an arbitrator that a party liked from a prior proceeding, may no longer be eligible for appointment. Parties should check whether their preferred arbitrators are listed on the AAA National Roster—and, if not, they should consider revising their contractual arbitration provisions to allow for the appointment of off-Roster arbitrators.

Reassessment of current template contractual arbitration provisions, and advance planning when filing an arbitration, will help parties prevent major disruptions that might otherwise arise due to these rule changes. All AAA construction arbitrations will default to the new AAA Rules unless the parties’ agreement provides otherwise. The 2024 AAA Construction Industry Arbitration Rules can be found here.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Marc Feinstein, an O’Melveny partner licensed to practice law in California and the District of Columbia; Sherin Parikh, an O’Melveny counsel licensed to practice law in California; Andrew Weisberg, an O'Melveny counsel licensed to practice law in California; and Ry Amidon, an O’Melveny associate licensed to practice law in California, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

© 2025 O’Melveny & Myers LLP. All Rights Reserved. Portions of this communication may contain attorney advertising. Prior results do not guarantee a similar outcome. Please direct all inquiries regarding New York’s Rules of Professional Conduct to O’Melveny & Myers LLP, 1301 Avenue of the Americas, Suite 1700, New York, NY, 10019, T: +1 212 326 2000.