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Conflict mediation in construction business disputes

On Behalf of | Aug 23, 2023 | Construction Contracts

Disputes over project delays, budget overruns and differing contract interpretations are common in construction.

Conflict mediation plays a role in resolving these issues. It promotes cooperation and helps maintain business relationships.

Understanding conflict mediation

Mediation is a structured process involving a neutral mediator. The mediator facilitates communication between disputing parties. They assist in identifying common ground, exploring possible solutions and guiding discussions. The Texas State Office of Administrative Hearings has about 30 trained mediators. Some have backgrounds in construction.

Benefits of conflict mediation in construction business disputes

Mediation emphasizes the preservation of valuable business relationships by directing attention toward solutions. It avoids placing blame on one party over the other. This makes it easier to reach a resolution. Some benefits include:

Time and cost-efficiency. In the construction industry, tight project timelines and limited budgets demand quick solutions.

Tailored solutions. Conventional solutions do not always work for construction disputes. Both parties contribute to a custom solution through mediation.

Privacy. Court records are public. Mediation protects a company’s reputation by disputing outside of court.

This approach to conflict resolution is important within the construction sector. Maintaining positive connections with contractors, subcontractors and clients is key to future collaborations.

The mediation process

The mediation process begins with opening statements from each party expressing their viewpoint. This initial phase sets the stage for negotiation. During this process, both parties discuss possible compromises. The mediator is most valuable during this part. After reaching an agreement, you can formalize the terms in a written contract. Use that contract to prevent any misunderstandings or future disputes. The final document is legally binding.

Disputes can derail projects and damage partnerships in the construction industry. Mediation is a valuable tool for achieving beneficial outcomes for everyone.