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3 reasons mediation is the top choice for construction disputes

On Behalf of | Mar 20, 2023 | Arbitration and Mediation

As a contractor serving New York businesses and residents, you will likely face a construction dispute sooner or later. Whether a disagreement with a sub-contractor or a vendor, these disputes disrupt your operations and may even impact your finances.

Do you have a plan in place to manage any construction disputes that may arise? Litigation is always possible, but mediating your construction disputes may make better sense.

Offers control and flexibility

Courts can have a narrow viewpoint in construction dispute cases. They know the law, not the ins and outs of specific disputes. Mediation allows the parties to discuss the issue and arrive at a solution all parties find satisfactory. With litigation, everyone must abide by the court’s decision, even if it seems unfair or one-sided.

Takes less time

Lawsuits can drag on for weeks sometimes, taking you away from your business interests. Mediation usually involves attending a few sessions, reaching an agreement and ending the matter. Those who wish to solve the dispute as quickly as possible typically choose mediation.

Reduces your expenses

Litigation is costly from its outset, and the expenses typically increase until the matter is resolved. Mediation nearly always costs less than litigation, allowing contractors and subcontractors to pocket more of their earnings.

Other alternative dispute resolution options

Mediation remains the leading choice among construction professionals looking to resolve a dispute, but you can also address the matter through:

  • Direct negotiation. Sometimes, the parties to a disagreement can find an acceptable middle ground by negotiating with each other directly.
  • Arbitration. With this option, an unbiased third party hears both sides of the dispute and decide the matter (it may be binding or non-binding).

Speak with a legal professional to ensure your effort to resolve the issues does not compromise your company’s best interests.