Ti	=	Agreement for Standing Neutral
0.sec	=	The parties will, either in their contract or immediately after entering into their contractual relationship, designate a Standing Neutral who will be available to the parties to assist and recommend to the parties the resolution of any disagreements or dispute which may arise between the parties during the course of the relationship.
1.Ti	=	Appointment
1.sec	=	The neutral will be selected mutually by the parties. The neutral should be experienced with the kind of business involved in the parties’ relationship, and should have no conflicts of interest with either of the parties.
2.Ti	=	Briefing of the Neutral
2.sec	=	The parties will initially brief the neutral about the nature, scope and purposes of their business relationship and equip the neutral with copies of basic contract documents. In order to keep the neutral posted on the progress of the business relationship, the parties will furnish the neutral periodically with routine management reports, and may occasionally invite the neutral to meet with the parties, with the frequency of meetings dependent on the nature and progress of the business venture.
3.Ti	=	Dispute resolution
3.sec	=	Any disputes arising between the parties should preferably be resolved by the parties themselves, but if the parties cannot resolve a dispute they will promptly submit it to the neutral for resolution.
4.Ti	=	Conduct of hearing and recommendation
4.sec	=	As soon as a dispute has been submitted to the neutral, the neutral will set an early date for a hearing at which each party will be given an opportunity to present evidence. The proceedings should be informal, although the parties can keep a formal record if desired. The parties may have representatives at the hearing. The neutral may ask questions of the parties and witnesses, but should not during the hearing express any opinion concerning the merits of any facet of the matter under consideration. After the hearing the neutral will deliberate and promptly issue a written reasoned recommendation on the dispute.
5.Ti	=	Acceptance or rejection of recommendation
5.sec	=	Within two weeks of receiving the recommendation, each party will respond by either accepting or rejecting the neutral’s recommendation. Failure to respond means that the party accepts the recommendation. If the dispute remains unresolved, either party may appeal back to the neutral, or resort to other methods of settlement, including arbitration (if agreed upon by the parties as their binding method of dispute resolution) or litigation. If a party resorts to arbitration or litigation, all records submitted to the neutral and the written recommendation will be admissible as evidence in the proceeding.
6.Ti	=	Fees and expenses
6.sec	=	The neutral shall be compensated at his or her customary hourly rate of compensation, and the neutral’s compensation and other reasonable costs shall be shared equally by the parties.
7.Ti	=	Succession
7.sec	=	If the neutral becomes unable to serve, or if the parties mutually agree to terminate the services of the neutral, then the parties will choose a successor Standing Neutral.
	=	[G/Z/ol/7]
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[The language above outlines the most basic kind of Standing Neutral arrangement. If the parties have any special wishes concerning the Standing Neutral’s role, or any special procedures that they wish to follow regarding referral of disagreements or disputes to the neutral, they can include them at this point in the agreement. If the parties wish to incorporate and adapt a standard set of procedures into the agreement, they can insert the following language, which refers to a standard set of American Arbitration Association Guide Specifications for construction projects (which are available at www.adr.org):	=
Reference Procedures. The procedures for resolution of disputes by the neutral shall in general follow those established by the Dispute Resolution Board Guide Specifications of the American Arbitration Association, dated Dec. 1, 2000, using Section 1.02D, the Alternative Procedure for Selection of a Single-Member Board, substituting “the Standing Neutral” in every place where there is a reference to the Board; treating every reference to “the Contract” as a reference to “the contract relationship between the parties;” and, in every case where there is a reference to such matters as “construction activity,” “job site,” “plans, specifications, drawings, contract documents” or other terms peculiar to the construction industry, applying those procedures to activities under the contract relationship between the parties.	=