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How to Save Money on a Construction Dispute

November 27, 2014 by · Leave a Comment 

Litigation is probably one of the last places you expect to save money in construction, but costly litigation can put a small outfit out of business. Most disputes arise from changes outside of the contractor’s hands, like weather or personnel challenges, so it’s important to have someone in your corner. Fortunately, private mediation is much cheaper and better for your long term business relationships. Here is how mediation works, and what you can expect from the process.

Mediation Defined

Mediation is when two parties come together to discuss a dispute. Since neither party is capable of solving the dispute on its own, a third party is brought in to review the case with an impartial eye. The mediator reviews everything, from the design process to obligations outlined by construction turnaround services. Their job is to help gather all of the necessary paperwork and help find legal grounds to settle the case.

Why Mediation Works

Mediation has two major advantages over litigation: it’s faster and better for relationships. Mediation is used to help courts clear their dockets without the hassle of trial, which can go one for weeks or months in extreme cases. Mediation also allows both parties to air their grievances, so everyone feels that their issues were addressed. It’s a small thing, but the benefit to both businesses is huge. Mediation is like sitting down for a drink with a friend you are arguing with. There is a dispute to be sure, but both of you will leave feeling satisfied.

: Lyle Charles Consulting offers construction turnaround services and short term management solutions. Consult Lyle Charles for assistance mediating construction disputes.