How Does Mediation Benefit the Construction Industry?

Summary: Mediation is both time and cost efficient for all parties involved.

Construction projects can take years to complete and involve hundreds, if not thousands of workers. Efficient conflict resolution in the construction industry remains an emphasis point because it helps maintain relationships between entities and workers who collaborate on a project.

In addition to maintaining solid relationships on a project, parties will want to keep a good relationship for future projects as well.

How Common Are Disputes?

Disputes are common in the construction industry. Parties often turn to mediation to minimize time and costs, which can is inherently different when litigation or arbitration is pursued. Mediation is also appealing because a construction dispute can be mediated while litigation or arbitration is an ongoing process that may take months to get to the first stage.

What is Mediation?

Mediation is a type of private dispute resolution process where both parties work with a neutral legal advisor, also known as a mediator, to negotiate a settlement to their dispute. The mediator has no vested interest in the outcome and is trained to facilitate a settlement between the two parties. Furthermore, a mediator in construction-related disputes is often a professional who is both knowledgeable and experienced in construction.

The Advantages of Mediation

Generally, mediation is faster and less costly than litigation or arbitration. Sessions may take no longer than a day or two, compared to a court trial that can take weeks or even months. The time advantage of medication is particularly important because resolution of disputes can lead the way to cooperation between both parties, as opposed to litigation or arbitration where future collaboration is highly unlikely.

Blog submitted by Lyle Charles: Lyle Charles, of Lyle Charles Consulting, can provide expert private mediation services for construction-related disputes. To learn more, call today.