Most construction contracts include either mediation or arbitration clauses in them. These alternative dispute resolution options provide construction companies and their workers, vendors and clients a way to amicably work out their differences before pursuing costly litigation.
Many construction contracts call for mediation before arbitration and describe litigation as an option of last resort. It’s often hard to tell what it’s going to take for quarreling parties to resolve their differences. Having a fundamental understanding of mediation can help you better prepare for the earliest stages of the dispute resolution process.
What do most contracts first call for mediation when disputes arise?
Many construction contracts require mediation when conflicts arise before any other approach. They do this because it brings individuals with seemingly disparate interests together to see if they can reach a compromise over their differences. A mediator is an independent, third-party who steps in and listens to each sides’ position in hopes of agitating them toward an amicable solution.
Sometimes, people feel that mediation won’t help resolve their differences if they have polar opposite perspectives. There’s generally no potential for finding common ground between them. While they may envision themselves as having opposing viewpoints, they may not be all that far apart from an outsider’s or mediator’s point-of-view.
A positive aspect of mediation is that it’s a collaborative approach. It’s not uncommon for construction companies to initially try to resolve disputes in-house before getting their attorneys to negotiate a resolution. There are instances in which neither one of these options does the trick, though. Mediators often find the most success in these cases because they aren’t impartial to either party. Instead, they are solution-focused.
Construction companies who successfully resolve their differences with others via mediation also send a message to potential stakeholders, vendors, workers, and customers that they’re flexible and aren’t entirely money-driven.
Can mediation help your construction company resolve outstanding disputes?
Many construction companies here in Central Islip let matters linger or fester because they fear that there’s no time-efficient or cost-effective way to resolve disputes that arise. An attorney can show you how you can put different New York alternative dispute resolution options to work for you.