Reasons Why Mediation Is Good For Resolving Construction Disputes
Construction projects are often magnets for conflict. Whether it’s a disagreement between the property owner and contractor or the contractor and sub-contractors, the money and time commitment that are often involved in both small and large-scale construction projects create multiple opportunities for conflict before, during and after a project’s completion. This is why mediation as a form of Alternative Dispute Resolution in construction disputes can be such a useful tool.
A mediator with expertise in construction mediation will be able to assist with conflicts related to contract review, occupational safety, risk management and labor disputes. The right mediator will be able to demonstrate expertise and experience in mediating disputes among all construction industry personnel, including owners, contractors, sub-contractors, architects, engineers, insurance companies, manufacturers and suppliers of materials used in construction projects, equipment suppliers, mortgage and construction loan lenders, consultants, accountants and building code officials.
When a contractor or construction company’s reputation is on the line, extensive litigation through a civil lawsuit is the last thing most business owners want. Litigation is a very public matter and can ruin a company’s reputation that has taken years to build. This is another reason why construction mediation is so successful—when a dispute is settled out of court, it is often in everyone’s best interest. Mediation is confidential, private and ensures that the final decision regarding settlement remains in the full control of the parties in dispute. No judge or jury will determine the outcome of your case and there will be no public record of the details of the dispute.
With the right mediator, parties involved in a construction dispute can settle their conflict quickly and efficiently, without spending a lot of time and money to do so. The best part is that mediation is non-binding. This means that if you are still unsatisfied with the outcome of the mediation sessions, you can always choose to file a lawsuit as a last resort.