Mediation is becoming an increasingly common method of dispute resolution in construction and engineering disputes.
In our previous blog post (available here), we compared the three main types of dispute resolution.
Owing to this growth in popularity, it is important to understand the basics of this dispute resolution process.
An Alternative Dispute Resolution (ADR) method, mediation is often encouraged by the Courts.
The whole process is confidential, usually faster, flexible, and less expensive than any formal proceedings.
Mediation is ideal for lower-level disputes, in which the cost of using another dispute resolution method would be too high.
This method is ideal for parties wanting to preserve or re-establish their relationship.
What does mediation cost?
The cost of the mediation process is usually lower than other forms of ADR.
This is because the cost is usually divided between each party.
Many mediation proceedings were moved online during the COVID-19 pandemic, which means that the cost of hiring a venue to host the mediation sessions is eliminated.
What makes for an effective mediation process?
The most important aspect of an effective mediation process is a mutual commitment by all involved parties.
On this point, a successful mediation process hinges on a genuine willingness to compromise.
A skilled mediator will help both sides understand the other’s point of view.
Mediation will fail if either party is simply “going through the motions,” and not willing to engage fully in the process.
Reaching the point where using mediation is agreed upon is often the hardest part of the process.
Should I use mediation to resolve my construction dispute?
If any or all of the following apply to your circumstances, it is worth considering using mediation:
- Looking to resolve the dispute quickly
- Use a dispute resolution with a low cost
- Obtaining outcomes that are beneficial to both parties
- Both parties are looking to maintain a good relationship
If you have a construction dispute and are considering using mediation to resolve it, contact us.