The Major Advantages of Private Mediation
Summary: Mediation allows both parties to express their concerns and come to a mutually beneficial settlement without delaying the project for a significant amount of time, losing a substantial amount of money due to this delay, and maintain relationships between both parties involved.
Choosing private mediation over other forms of alternative dispute resolution has its advantages.
This article will discuss the major benefits that mediation offers to the construction industry.
Mediation has been known to be less costly than civil litigation for a variety of reasons. For one, mediators that specialize in construction cases tend to charge by the hour – and most cases can be completed within a span of one to two days. Additionally, since mediation tends to be resolved within a couple of days (or less), time spent away from the business is minimized, therefore construction can resume without much delay – the longer the project is held off, the more money is lost.
Because mediation can be held at a residence, as opposed to having to schedule a jobsite visit or a neutral location (as required by arbitration), the process is simplified and easier to prepare for. Furthermore, there are no legal court filing fees or related expenses.
During mediation, the parties involved can fully express their concerns and opinions, unlike civil litigation where the attorneys are the ones that handle each and every step unless the party takes the stand. Now, attorneys can be brought in during mediation if either party wishes to do so, but it is not mandatory.
One of the major benefits that mediation brings to the construction industry is that it allows both parties to work together to reach a common solution and settlement. And, both parties can continue to work together to complete the construction project once the settlement is reached.
Remember, the goal of mediation is to look for a common ground that both parties can come to terms with. The mediator, usually one that is well versed in construction legalities and jargon, such as Lyle Charles, will guide the process along and also see eye-to-eye with either party due to his expertise in the field. It’s highly recommended that you hire a mediator that has previous experience working within the construction field as the process will run much smoother.
Upon the arrival of a settlement, if there are new items that come into the dispute, another mediation can be scheduled without affecting the prior items. This is huge as construction projects tend to be put on hold if a major dispute develops during the early stages of the project. Furthermore, a quick and low cost mediation can be scheduled to reach a settlement, which will allow the project to continue in a timely manner.