What Is a Mediation in Construction Dispute?Mediation is different from arbitration and litigation. In mediation, there is usually a mediator that is agreed to by both parties. However, the significant difference is that mediation doesn't have a legally binding effect upon the parties. Mediation is a truly low cost alternative to arbitration, litigation, etc. In addition, mediation might allow both employer and contractor to continue a prosperous relationship while mediating a specific issue of controversy.
How Should I Select a Mediator?Most importantly a mediator should be an impartial party that both the contractor and employer respect. A mediator can be appointed through the courts or privately employed by the American Arbitration Association.
How Does Mediation Work?Mediation does not work like a typical court. Instead, both parties are actually in different rooms and a mediator goes back and forth between rooms attempting to broker an agreement. Both parties will attempt to negotiate through a mediator and present offers and counteroffers to various issues.
When Should Mediation Begin?In construction disputes, mediation should begin whenever a problem that has been brought up between both parties can't seem to be solved. It is important that mediation begin before the situation becomes abrasive and negative. The purpose of mediation in construction disputes is to prevent a breach of contract. Both parties have an inherent interest in keeping the contract and remaining profitable.
Should I Contact an Attorney?An experienced construction attorney plays an important role in mediation. For example, experienced attorneys can help find a good mediator and work with their clients in presenting a favorable but fair position. Furthermore, attorneys can advise their clients on what is legally binding. Therefore, if a client is asking too much, an attorney may instruct their client to compromise because of the more severe consequences of litigating the matter in court. |
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