{"id":83200,"date":"2020-09-30T08:25:17","date_gmt":"2020-09-30T07:25:17","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=83200"},"modified":"2022-02-06T19:57:45","modified_gmt":"2022-02-06T19:57:45","slug":"construction-disputes-mediation","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-disputes-mediation\/83200\/","title":{"rendered":"Why mediation should be used to resolve construction disputes"},"content":{"rendered":"

Specialist construction and engineering solicitor Christopher Cox of Michael Gerard Solicitors<\/a>, explores why mediation is the best way of achieving a satisfactory outcome for all parties in most construction disputes<\/h2>\n

Mediation is a voluntary process in which an independent third party is appointed to act as an impartial neutral, assisting parties in dispute to cooperate in arriving at a settlement. The process is confidential, can be arranged in a matter of days and the outcome is only binding if the parties agree.<\/p>\n

What are the costs?<\/h3>\n

Compared to other forms of dispute resolution<\/a>, which can rack up bills of tens of thousands of pounds with stress levels to match, the cost of mediation is relatively low. Fees are based on a senior lawyer\u2019s rate per hour spent on the case, divided by the number of parties, plus the cost of the mediation forum.<\/p>\n

When mediation is agreed as a form of Alternative Dispute Resolution (ADR) without court proceedings, both sides pay for legal opinions prior to the mediation, to be used as the basis of their negotiation.<\/p>\n

Do I have to use mediation?<\/h3>\n

Currently, courts only order mediation if the parties agree. It is all too common for lawyers to spend significant time and effort on a case only for the parties see sense and agree to mediation<\/a>. Huge expense has already occurred in relation to \u201cred mist\u201d processes like litigation, arbitration or adjudication \u2013 and there is nothing to show for it but deadlock. At this point, mediation may seem like yet another expense but, in most cases, it remains the best option.<\/p>\n

In a move that will simplify the process and ultimately save businesses time and money, the UK courts are soon to order that mediation must take place before parties can go to court. So ideally, construction disputes should start not with a claim letter but with an agreement to reach a deal by mediation.<\/p>\n

Why is mediation so effective?<\/h3>\n

Mediation focuses on what you and your opponent need, as opposed to what you both think your rights might be.<\/p>\n

Because of this, in most cases, the only preferable alternative to mediation is the avoidance of construction disputes<\/a> through the use of well-drafted contracts that guard against problems arising in the first place. In addition to its relative affordability and speed, reasons why mediation is nearly always the right choice include:<\/p>\n