1.    Unless a party submits the dispute to the American arbitration association, the arbitrators must be selected in accordance with this section. The party desiring     arbitration of claims for more than one hundred thousand dollars shall serve a written demand upon the adverse party. The demand must designate an arbitrator and must describe and detail all claim items that are submitted to arbitration. The party served with the demand shall respond in writing within thirty days, and the response must designate a second arbitrator and must explain the respondent’s position concerning each claim item. If the respondent does not designate the second arbitrator within thirty days, the claimant may apply to the district court of the judicial district in which the project, or any part of the project, is located for the appointment of the second arbitrator. If the two arbitrators do not designate the third arbitrator within thirty days after the second arbitrator is designated, either party may apply to the district court for the appointment of the third arbitrator. The proceedings in the district court are governed by the rules of civil procedure concerning motions.

2.    The same procedure applies to the parties for claims involving less than one hundred thousand dollars, except that the parties jointly shall select the arbitrator after the demand and response.