When to Use Mediation in a Construction Dispute

Written by: Lyle Charles Consulting

Summary: Disputes in construction & turnaround services are easier to resolve when you utilize mediation.

In construction, time is money. Avoiding trial is par for the course as firms try to find a legal resolution without ruining a relationship. The solution to this challenge is private mediation. Mediation is useful in situations where both parties want to maintain a relationship, but have a dispute neither can afford to walk away from without some kind of resolution. Mediation has some other advantages over going to trial as well.

Filing Claims

Construction claims management is a crucial skill leading into mediation. The entire process begins by documenting everything related to the project, including filling out legal briefs and gathering materials to file a claim. This is why it’s so important to document every aspect of a construction project. A consultant is not a legal professional, but understands the laws surrounding your project and the dispute.

Speed of Process

On top of being a mutually beneficial process, mediation is usually done within a few days. It can take longer, but those situations are uncommon. Mediation is effective because both parties get to air their grievances. A neutral third party helps sort out the dispute without getting involved, and without making the problem worse.

Costs

The costs of mediation tend to rank lower than going to trial. This is because mediation forgoes the large cash awards for damages in favor of payments that settle differences. Mediations are meant for disputes that don’t require too much investigation and scrutiny. Mediation also means less time lost to court processes, which means you can move on to your next project faster.

Bio: Lyle Charles specializes in construction claims management for home and commercial construction projects.