Construction contracting has become a lot more meticulous in this day and age. Contracts are now littered with hundreds of pages that look to place all liability on the contactor. In response to this, contractors shoot back with classifications to the terms and conditions of the contract. The volatility of this back-and-forth is the reason why so many construction delay claims are present in today’s sites.
Mediation can be defined as the voluntary process in which both parties involved in a claim work with an impartial mediator that assists them in finding a mutually beneficial situation to resolve the conflict. Vastly different than litigation, mediation doesn’t depend on winning or losing. Rather, it can be considered more of a conclusive meeting that works to fulfill the needs of every party involved. The mediator is not judge. He or she is just a negotiator, for a lack of better words.
The Benefits of Mediation
The advantage of construction mediation is that it heavily emphasizes risk and cost control. A judge does not control the outcome. In fact, the parties decide when the negotiation process is complete. Furthermore, the disputants are the ones handling every suggestion that’s put on the table. Mediation is the last line of peaceful defense that the parties will go through before escalating into all-out war with the arbitration and litigation process. Mediation is the most cost-efficient decision that parties can agree to. If negotiations do not work out, the mediation process can be closed at any time. Remember, it’s a voluntary process that requires absolutely no commitment from anybody participating.
Bio: Lyle Charles, of Lyle Charles Consulting, is structural steel and steel fabrication expert that provides construction mediation and business coaching.