A multi-tier clause requires parties to attempt resolution through escalating stages — usually direct negotiation between senior executives, followed by mediation, with arbitration as the final, binding stage if earlier tiers fail.
Done well, this filters out disputes that never needed a tribunal in the first place and preserves the commercial relationship while the numbers are still negotiable. Done badly, it becomes a stalling tactic: a party facing a strong claim can drag out the earlier tiers indefinitely, delaying the point at which the other side can actually file for arbitration.
The fix is procedural, not aspirational: fix a hard time limit for each tier (commonly 15 to 30 days), name who must participate, and state explicitly that the clause does not bar a party from seeking urgent interim relief regardless of which tier is in progress.