What is the common procedure for resolving construction disputes?

Mediation or arbitration is a widely accepted procedure for resolving construction disputes due to its structured yet flexible approach. Unlike litigation, which can be lengthy, costly, and public, mediation and arbitration offer private settings where parties can discuss their differences with the help of a neutral third party or arbitrator.

In mediation, the mediator facilitates communication between the parties, helping them to find common ground and come to a mutually acceptable agreement. This process is often quicker than going to court and can preserve business relationships by fostering collaboration rather than confrontation.

Arbitration, on the other hand, involves a binding resolution made by an arbitrator who reviews the evidence presented by both sides. This process is also private and typically less formal than a court proceeding, allowing for a more efficient and effective resolution of disputes.

Both mediation and arbitration are preferred in the construction industry because they provide control over the resolution process, maintain confidentiality, and avoid the potential adversarial nature of litigation. They also foster a quicker resolution which is crucial in the construction sector where project timelines can be greatly affected by disputes.