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Is Mediation Really Effective for Resolving Construction Disputes?

Often taking months upon months to resolve, construction disputes can drain contractors of resources even when those companies are completely in the right. Alternative dispute resolution (ADR) methods like mediation are often recommended to resolve disputes, but are they really effective? In this article, a Tallahassee construction dispute attorney aims to answer that question. If your company is currently embroiled in a dispute, consider working with the experienced attorneys from Cotney Construction Law. 

Global Construction Disputes Report

The Ninth Annual Arcadis Global Construction Disputes report revealed some interesting findings, including that the average dispute in North America was valued at $16.3 million (US) and lasted a little over 15 months. Perhaps even more interesting was the fact that the top three causes of disputes all pertained to contracts: a failure to understand or comply with the contract, errors or omissions in the contract, and failure to properly administer the contract. 

Related: How Poorly Drafted Construction Contracts Lead to Litigation

Having your contracts reviewed by an experienced attorney can help your company avoid disputes altogether. It’s essential for mitigating confusing or misleading contract language and ensuring that all parties are one the same page. But we’re not here to talk about dispute prevention; we’re here to talk about dispute resolution. 

Related: Why Mediation Should Be Used For Your First Attempt at Resolving a Dispute

The Power of Mediation

The above-cited report had one more unique finding: construction companies are reaping success by employing ADR methods like mediation. This is because mediation is more time- and cost-effective than litigation. We only have to look at previous years to see how effective these resolution techniques are. The value of construction disputes has been steadily declining since 2014, when disputes were valued at $34.3 million. “… if sophisticated project participants continue to invest in early resolution techniques, we believe that the overall value of disputes will continue to decline.” 

Contract-Mandated Mediation

At Cotney Construction Law, we recommend investing in early ADR methods. One way you can do this is by having mediation mandated by your construction contracts, ensuring that a lawsuit is a last resort, not a first resort. A Tallahassee construction mediation attorney can not only include these provisions in your contracts but also represent your company in the event that mediation is pursued. For legal representation that can be your company’s sword and shield, partner with the attorneys from Cotney Construction Law.  

If you would like to speak with a Tallahassee construction mediation attorney, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.