Construction mediation and litigation are two ways to potentially resolve a dispute. Litigation generally means going to court and getting a ruling. This may be the only option that the parties feel they have if they are in a long-term dispute where no joint resolution seems likely.
But mediation is a type of alternative dispute resolution where the parties sit down with a neutral third party and try to find a compromise or a solution on their own. If they can do so, they can often keep their case out of court. When could this be helpful with a construction dispute?
Keeping the job on track
One of the main benefits of mediation is that it is often faster than litigation. With a court case, it depends on the availability of the court, and there could be numerous steps that need to be taken, including filing paperwork, scheduling hearings, presenting arguments and much more. It could take months before there is an actual resolution to the dispute. But with mediation, which is often faster and less expensive, both parties can work together to keep the job on schedule.
For instance, perhaps there is a dispute between a contractor and a subcontractor or a parts and materials supplier. It is in the best interests of all of these parties to keep the project moving forward so that they can stay within the client’s schedule and receive compensation for completing that project. In this sense, mediation may be beneficial because all parties are working toward the same end goal, even if they have to resolve a dispute to get there.
Every situation is unique, of course, but this is why it is beneficial to know exactly what legal options you have when facing a construction dispute. It can help to work with an experienced law firm accordingly.