Using mediation to resolve construction-related disputes

Construction projects often take years to finish, involve layers of contractors and subcontractors, and use hundreds, if not thousands, of workers. Efficient conflict resolution is vital within the housing industry because it helps maintain relationships between people and an entity that has got to still work together on a project which will be halfway on your schedule when conflicts arise. Additionally to maintaining an honest relationship on a project under construction, the parties want to take care of their relationship for future projects.

Disputes are quite common in construction projects

Parties often resort to mediation to attenuate disputes and therefore the costs, both financial and time, that arise from litigation and arbitration. Mediation is additionally attractive because a construction dispute is often mediated while litigation or arbitration is on-going or while the project remains under construction.

Mediation Basics

Mediation may be a private dispute resolution process during which the parties work with a mediator to barter a settlement to their dispute. The mediator may be a neutral party who has no vested interest within the outcome and is trained to facilitate an agreement between the parties. Also, for construction-related disputes, the mediator usually has experience within the housing industry.

A mediator cannot bind the parties to any outcome. In mediation, the parties are the choice makers and only they will reach a mutually satisfactory agreement and find solutions that facilitate the completion of a project still under construction or preserve relationships for future construction projects. this is often in contrast to litigation and arbitration, where control of the dispute is handed over to a court or arbitrator who has no interest in facilitating the timely completion of a project or preserving relationships.

Advantages of mediation during a construction dispute

Mediation is quicker and fewer expensive than litigation or arbitration. Mediation sessions typically last no quite each day or two, compared to a court trial or arbitration hearing which will take weeks. Mediations are often scheduled as soon because the parties are ready, while arbitration hearings and court trials often take years to schedule. this point advantage is especially important when mediation takes place while a project remains under construction because dispute resolution paves the way for greater cooperation between project participants.