Construction dispute mediation saves time and money because it’s designed to be faster, less formal and more collaborative than litigation or arbitration.
Here’s how construction dispute mediation works in practice:
Faster Resolution
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- Court delays avoided: Court proceedings in construction cases can take months or years, especially if expert witnesses, extensive documentation and appeals are involved. Mediation often resolved disputed in days or weeks.
- Flexible scheduling: Parties choose a mediator and set meeting times without waiting for court availability.
- Focused discussions: Instead of going through lengthy pleadings, discovery and procedural steps, mediation cuts straight to the core issues.
Lower Legal Costs
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- Reduced lawyer hours: Becasue mediation is less formal, the amount of legal preparation is much smaller than in court or arbitration.
- Fewer experts required: Instead of hiring multiple experts for a trial, parties an jointly appoint or share information during mediation.
- Avoiding appeals: Settlements reached in mediation are final and not subject to appeal, eliminating another potential layer of cost.
Preserving Business Relationships
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- Construction projects often involve long-term contracts and multiple stakeholders (owners, contractors, subcontr
Flexible & Creative Mediation SolutionsÂ
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- Courts and arbitrators usually impose binary outcomes (win/lose, damages awarded or not). Mediation allows for creative settlements – such as adjusting project timelines, revising payment structures or agreeing on future work – that may save both sides money compared to rigid judgments.
Lower Opportunity Costs
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- Disputes pull project managers, engineers and executives away from productive work. Mediation shortens the time they spend on the dispute, meaning more focus remains on completing projects and generating revenue.
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