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New York Construction Law Blog

When can contractors use mediation in construction cases?

Posted by Karl Silverberg | Aug 17, 2023 | 0 Comments

In the dynamic construction world, conflicts and disputes can arise unexpectedly, potentially causing delays, cost overruns and strained relationships. While there are various ways to address these disputes, mediation has emerged as an effective alternative to traditional litigation. Mediation is a voluntary process where an impartial third party, known as a mediator, facilitates discussions between disputing parties.

Unlike litigation, which involves a court-imposed decision, mediation empowers the parties to shape their resolutions. This approach helps foster cooperation, preserves relationships and can lead to quicker and more cost-effective outcomes. Here are instances where contractors can successfully leverage mediation to resolve construction-related conflicts.

Payment and billing issues

Payment disputes can derail construction projects and strain relationships between contractors, subcontractors and clients. Thankfully, mediation provides a neutral setting for parties to discuss payment discrepancies, verify work completion and agree on appropriate compensation. This approach encourages transparency and can lead to prompt resolution, helping ensure the project's financial health and progress.

Defective work and quality concerns

Quality control is paramount in construction, but differences in expectations can lead to conflicts over defective work or perceived subpar quality. Mediation allows all parties involved to assess the work objectively, address concerns and collaborate on rectifying the issues. This helps ensure project success and safeguards the reputations of contractors and subcontractors.

Delay and schedule disputes

Tight schedules often bind construction projects, and delays can have cascading effects on costs and timelines. Mediation enables stakeholders to identify the root causes of delays, explore potential solutions and allocate responsibilities fairly. By finding common ground and establishing clear paths forward, mediation can help minimize project disruptions and financial losses.

In the intricate world of construction, disputes are almost inevitable. However, how these disputes are handled can significantly impact project outcomes and relationships. Mediation offers a flexible, collaborative and solution-oriented approach that helps empower contractors to navigate conflicts effectively.

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


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