If you’re facing a construction claim or dispute, it can seem like the process is unfairly stacked against you. You may not understand what you need to prove your side, and you could inadvertently risk damaging relationships with important suppliers and builders. Even a simple dispute can mean hours of construction claim preparation. That kind of time tends to tax smaller firms who barely have enough personnel to cover operating costs.
If you are faced with the option to bring a dispute to mediation, there are concrete benefits to considering this form of resolution.
One of the major reasons for mediation is to preserve working relationships. When you’re in the construction industry, you tend to make connections that return to you for more work if you do well by them. Those connections can be at jeopardy during a trial dispute, so mediation is a great method to reduce those stressors.
Construction claims management is already an expensive undertaking, trial just adds to those costs. There is the cost of hiring an attorney, paying any court fees, and the costs of losing are always on the table. Trials can drag out for months, and even though you can manage your operations while a trial is happening you still have the ongoing stress of constant scrutiny. It’s not something most people like to carry with them.
Mediation cuts many of those costs immediately, and dramatically shortens the process. You’re done in days or weeks, not months.
How Mediation Works
Mediation involves a third party mediator who is impartial to the situation. This isn’t like going to a mutual friend. This person has valuable knowledge of the construction industry, its laws and its practices. This person is well-informed, and so is familiar with the technical jargon involved in the industry. There is another inherent advantage here, which is that mediators often understand what construction companies have to go through. They can provide a sound, reasoned voice speaking from experience.
Once the process is over, both party pay out any damages and the difference is considered resolved with a sense of finality.
Mediation is a process that greatly benefits the construction industry specifically. Claims take time and time costs money. Construction projects are often on extremely tight deadlines. Mediation is a way to resolve disputes and get back to focusing on the work at hand.
The construction consultants of Lyle Charles Consulting specialize in construction turnaround services, claims preparation, mediation and Lyle Charles can act as an expert witness in construction cases.