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On October 2, 2025, the Indiana state legislature passed a new bill that will impact the way construction contract disputes are resolved. The bill, known as the Construction Dispute Resolution Reform Act, aims to streamline the process and make it more efficient for all parties involved.Under the new law, parties engaged in a construction contract dispute will be required to participate in a mandatory mediation session before proceeding to arbitration or litigation. This mediation session will be facilitated by a neutral third party mediator who will help the parties explore potential resolutions and reach a mutually agreeable outcome.In addition to the mandatory mediation requirement, the Construction Dispute Resolution Reform Act also includes provisions for clear and concise contract language, which will help prevent misunderstandings and disputes from arising in the first place. The bill requires that all construction contracts include specific language outlining the process for resolving disputes, including the requirement for mediation before arbitration or litigation.This new law is seen as a positive step towards improving the efficiency and effectiveness of the construction contract dispute resolution process in Indiana. By requiring parties to engage in mediation before pursuing more costly and time-consuming avenues such as arbitration or litigation, the hope is that disputes can be resolved more quickly and with less expense to all involved.Industry experts have lauded the new legislation, saying that it will help to reduce the number of construction disputes that escalate into lengthy and costly legal battles. They believe that by encouraging parties to work together to find mutually agreeable solutions, the Construction Dispute Resolution Reform Act will ultimately benefit all stakeholders involved in construction projects in Indiana.Overall, the passage of the Construction Dispute Resolution Reform Act represents a significant milestone in the ongoing efforts to improve the construction industry in Indiana. By promoting a more collaborative and efficient approach to resolving disputes, this new law is expected to have a positive impact on the industry as a whole.