Comments on the 2018 edition of the CEDR Model Documents In the simplest case, an ADR clause allows the parties to agree that in the event of a dispute, they will use another form of dispute resolution (e.g.B. mediation) as a step before or at least outside of a judicial or compulsory arbitration procedure. An effective ADR clause usually saves time and costs and perhaps preserves valuable business relationships. An ADR clause leaves both parties in control and provides them with a simpler opportunity to settle a dispute before judicial or arbitral proceedings. It also offers the parties a constructive approach that goes beyond stalled or ineffective negotiations.