The use of mediation to resolve disputes between members of the construction community is finally taking hold in the industry as word of its effectiveness, efficiency and economy spreads.
All too often, arbitration is not a low-cost alternative to litigation as a means of dispute resolution.In either arbitration or litigation, a third party or parties determines the resolution of the claim. Owners and managers of the companies involved not only lose control of the cost but also the decision-making process. Except for the unusual circumstance, business relationships are completely severed.
What makes mediation a better route than arbitration or litigation has to do with the inherent differences. Mediation is a less formal, non-binding process in which both sides voluntarily present their cases to a third party that both have approved. The non-binding quality of mediation makes both sides more willing to listen than if they were constantly “on guard.”
Influencing the trend toward alternative methods of dispute resolution is the ever-growing backlog of cases waiting for trial. More important than that, however, is the cost-savings factor; settling a case quickly makes sense for everyone involved. While the trend in the 1980’s was “litigation, litigation, litigation,” today’s high legal costs motivate parties to find less costly alternatives like mediation.
Druml Group provides expert mediation services. The reason for our expertise is that our mediators have met the requirement of having previously served in either the CEO or CFO capacity for a large general contractor. They have three very important attributes: they know and understand construction; they know and understand money; and they are experienced dealmakers. While other companies might provide mediators with different backgrounds, we view our rigorous requirements as a key to resolving disputes.
Our mediation process is confidential and the parties and their lawyers are required to sign an agreement to that effect. We’ve designed our process to allow the business executive to minimize legal costs, control the decision-making process, avoid most of the emotional stress, maintain business relationships and provide the most rapid process for full and final resolution of disputes. Success rates in mediation normally exceed 80%. Call us today to mediate any size construction dispute you might have. Solving problem disputes is our passion!