Construction projects are often made more complicated with payment disputes, workmanship disputes, and scope-of-work disputes, resulting in the project grinding to a halt. Companies today have often opted for alternative dispute resolution (ADR) methods such as construction mediation and here are some of the reasons why it is preferred.
Privacy – Mediation and arbitration are private because the case is not heard in court. Although some parties believe that court cases force a resolution, some companies prefer privately handling their disputes.
Speed – Lyle Charles Consulting believe that ADR methods are quick and they void of procedural hiccups which offer a personalized outcome for all parties concerned.
Expertise – Most arbitration or mediation experts are experienced with working with a neutral party and understand the procedures that surround construction ADR, which means that your company will receive guidance that will help to resolve an issue faster and come to a resolution that benefits all parties concerned.
Ease – Organizing a meeting to discuss a dispute can be easy when parties are using mediation or arbitration processes, which makes organizing meetings quick and easy for all parties concerned.
More and more companies are including ADR clauses in their contracts to force parties to use mediation or arbitration, before opting for litigation in court. However, it is essential to understand what process is best for your company before adding this clause to your contracts.