Using mediation to resolve construction disputes

The typical construction project can run from months for residential or years for commercial projects. Each project employees lots of workers, contractors, sub-contractors, and suppliers. It is not surprising when something goes wrong. Proper and timely conflict resolution is critical to keep the project on its timeline and help maintain a good working relationship between parties. Here is some basic information on using mediation to resolve such disputes from Lyle Charles Consulting:

Mediation is the private process for dispute resolution between two or more parties part of a single project. The mediator is a neutral third-party with knowledge and experience in the construction industry. Mediation is the preferred method of dispute resolution and is faster and less expensive than litigation. To get a sense of what sort of issues result in mediation, here is a list of common disputes that you can resolve with construction mediation:

Defective work product – This is where the work product of the contractor, or a sub-contractor under their purview is sub-par and not acceptable.

Defective plans – In this instance, the issue with a defect in the design document from the architect or architecture firm.

Delays – The most common dispute are delays and who is responsible for the delays. Delays often involve significant cost overruns, so the final ruling involves who is paying for what.

Damage – A common issue in residential renovations where parts of the home that are not part of the project incur damage during work.

Termination – A dispute that arises when a contractor or sub-contractors account is terminated prematurely.

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