The Benefits of Private Mediation in Construction Disputes

Construction contracting litigations are complex, says Lyle Charles. Both the contractor and project owners can start a long-term lawsuit ridden with multiple-pages write-ups containing accusations and counter-accusations of several wrongs and legalistic maneuvering.

Luckily, construction contracts nowadays include an Alternative Dispute Resolution (ADR) to allow for private mediation in construction disputes without resulting to costly courtroom battles. Over 80% of construction dispute cases voluntarily submitted to mediators get resolved satisfactorily.

What is Alternative Dispute Resolution or Mediation?

Mediation is the process allowing two people or parties in an out-of-court meeting to resolve disagreements with a neutral person, also called the mediator, presiding.

  • Unlike the confrontational, do-or-die, emotionally-charged court battle, mediation is a quicker, less expensive, calm, and easier process.
  • Mediation atmospheres are friendly and aim at enabling the disagreeing parties to find a mutually acceptable solution and continue working together after reaching a settlement. In most civil litigations, the jury or judge will issue a verdict and an award, which often leads to a bitter parting of ways between the arguing parties.

Construction Advisory Services

A construction advisory expert can help to draw the project agreement while ensuring that the parties involved in designing, implementing, and financing agree before appending their signatures to the project documents.

The results of mediation are binding to the participating parties. The construction consultant may advise the project partners to include clauses facilitating multiple mediations in large scale projects in which electrical, building, water, flooring, roofing, plumbing companies come in as sub-contractors.