Mediation refers to a process that helps resolve disputes in private. The parties involved work with mediators to help construct a settlement which is outside the court and provides a win-win situation for both parties.
In the process of mediation for construction claims, a mediator who is an expert in the construction industry might study their dispute and provide a decision, however; he cannot bind parties to the outcome. The parties are the actual decision-makers, and it is up to these parties to reach a decision.
Today, solving construction disputes through any appropriate method has become more comfortable due to the presence of construction claims consultants. These experts with numerous years of experience in the field along with global certifications not only help with carrying out claims but also help resolve disputes between the two parties through arbitrations, mediations or court rulings.
Mediation for Construction Claims – Benefits
This article aims to highlight the benefits of mediation and out of court settlement of disputes, as applied to construction claims:
Saves Time And Cost
Mediation processes take a smaller amount of time and cost less too as opposed to the dispute settlement in court. Although large companies may not settle for mediation, saving costs and time saving is an essential aspect of smaller companies that are involved in small to medium scale construction project contractual agreements.
Whereas a trial may last for years, mediation proceedings usually take a few days or weeks.
Caters To Party’s Interests
Construction contracts may contain some ambiguous statements, missing or unforeseen requirements because of which the legal rights of each party may be subject to confusion and may be difficult to evaluate. Mediation focuses on the emotional, psychological and commercial needs of both parties along with their legal rights. Although all needs of the construction industry may be ignored except the legal requirements, mediation caters to the needs of all parties involved.
Communication
Although both parties may not be willing to communicate about the claims, mediation for construction claims provides a platform for both parties to communicate freely and frankly. Often effective communication is a critical success factor which results in the resolution of disputes. This communication pathway created by the mediator builds momentum in the process of dispute resolution.
Privacy Guaranteed
The mediation process remains private and confidential, meaning that all information remains confidential and cannot become public either during the mediation process or after. This is an essential aspect of mediations as the reputation of both parties remains untainted.
This is essential for the reputation of construction companies, for whom their reputation, profile and past performance remains extremely important.
Greater Autonomy Of Parties
Mediation for construction claims provide parties with the opportunity to participate formal or informally to solve their disputes and control the process and its results.
Allows Resolution Of Conflicts
Any potential conflict and hostility between parties that results because of arbitration, court and tribunal proceedings will be removed. Since most companies in the construction industries prefer and work for long-term business relationships, mediation remains an ideal tool for resolution of the dispute and is also conducive of the environment that the companies thrive in.
Mediation processes along with resolving disputes also help parties chalk out new options and possibilities, that are suitable for both parties and can help them achieve a win-win situation for both. Both parties are willing to accept a situation where both parties win.
As construction claims are multi-faceted and involve layers of issues, it is always better to solve the disputes, without the strict court judgments and on mediation table.
Conclusion
An effective mediation process, however, requires expertise, that novice entity would not be able to provide. Opt for construction claims consultants, if you’re looking for experts who not only help conduct and present claims but also provide services like mediation and arbitration.
Mediation remains an essential tool for dispute resolution in the construction industry. Considering the long-term relationships of entities within the industry and the long time that court rulings may take, mediations provide a more practical and a more friendly way of solving conflicts between parties. Mediation for construction claims not only saves money and time but also helps maintain cordial relationships between conflicting parties.