The EPA encourages the use of ADR techniques to prevent and resolve disputes with external parties (e.g., state agencies, industry, environmental advocacy groups) in many contexts, including adjudications, rulemaking, policy development, administrative and civil judicial enforcement actions, permit issuance, protests of contract awards, administration of contracts and grants, stakeholder involvement, negotiations, and litigation. In addition, the EPA encourages the use of ADR techniques to prevent and resolve internal disputes such as workplace grievances and equal opportunity employment complaints, and to improve labor-management partnerships.

Depending upon how formal or information the arbitration process is, the arbitration may proceed in a similar way to a trial. Witnesses may even be called. The length of time that this process takes will vary depending upon the circumstances, but it usually lasts a few days or a few weeks.

Arbitration can be voluntary (the parties agree to do it) or mandatory (required by law). Most contract arbitration occurs because the parties included an arbitration clause requiring them to arbitrate any disputes "arising under or related to" the contract.

Arbitration often is less costly than court litigation, primarily due to the compressed schedule for the completion of discovery and trial. ... The judge is assigned by the court without input from the parties. Thus, arbitration affords the parties the ability to select the decider, whereas court litigation does not.