Mediation's Role in a Construction Dispute

Association of Construction and Development
July 3, 2012 — 1,224 views  

While contracts for large construction projects have never been simple, the industry has seen increasingly complex agreements drawn up in the 21st century. The litigious nature of the industry has made contracts spanning 500 pages or more the new norm.

 

As a result, mediation for construction disputes has grown in popularity, and many contracts now require mediations as a resolution process, according to construction consulting firm Arcadis. Construction mediation is the voluntary process of discussing disputes with an impartial party overseeing the conversation to ensure everyone remains cool and collected.

 

Discussions may take multiple sessions for a resolution to be firmly agreed upon. However, mediation is typically a much more cost-effective way of determining a course of action than a lawsuit and will allow construction crews to complete the project. The mediator works to point out the benefits of continued negotiations and both parties are more likely to give and take until a compromise is fully outlined.

Association of Construction and Development