What are the benefits of construction mediation?

There are many reasons New York and New Jersey construction companies may want to avoid litigation when disputes arise. Court battles can be time-consuming, costly and damaging to business relationships. How can such battles be avoided? One option that many companies find helpful is mediation.

In mediation, parties that are in construction disputes meet with a neutral mediator. The mediator works with them to try to resolve the matter out-of-court. There are many benefits mediation could have for construction companies, including:

  • Saving time: Mediation often goes faster than litigation.
  • Saving money: Mediation may lead to fewer expenses than court battles.
  • Increased flexibility: Mediation isn’t bound by the same strict rules as litigation. This gives parties a lot more freedom in how to handle their dispute. Also, parties can generally get as creative as they want in the settlements they reach.
  • Control: The process is non-binding. Also, it is the parties that enter mediation that ultimately control the end result. The mediator is just there to facilitate. So, companies do not surrender control of their fate in this process.
  • Preserving relationships: Companies that have gotten into a dispute may want to work together in the future. Mediation is generally less adversarial than a court battle. This could help keep important business relationships from being damaged.

How likely mediation is to yield benefits for a construction company can be affected by many factors, including how prepared the company is when it enters the process. Skilled construction attorneys can answer question companies have about mediation and can help them prepare if they decide to use this dispute resolution method.

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Stephen Bialkowski

Stephen Bialkowski, Esq. is a member of the firm and a Litigator and Transactional Attorney practicing in the areas of construction, real estate, real estate development and business law.