Practical Solutions for Complex Construction Disputes
Construction disputes can become expensive, disruptive, and complicated very quickly. Projects often involve owners, developers, general contractors, subcontractors, design professionals, suppliers, insurers, and others whose contractual obligations and business relationships are closely connected.
Mediation gives the participants an opportunity to address their dispute confidentially, assess their options, and work toward a practical resolution without giving control of the outcome to a judge, jury, or arbitrator.
At Approved Dispute Resolution, we help parties and their attorneys approach construction disputes strategically, efficiently, and with a focus on meaningful solutions.
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Construction Disputes Often Involve More Than Money
A construction dispute may begin with a disagreement about payment, workmanship, delay, or responsibility. But resolving it often requires consideration of much more.
The parties may need to address project schedules, completion of unfinished work, repair obligations, warranties, change orders, retainage, insurance, liens, future business relationships, reputational concerns, and the cost and uncertainty of continued litigation.
Mediation provides flexibility to consider these issues together rather than reducing the dispute to a single legal claim or demand for money.
Construction Matters Appropriate for Mediation
Approved Dispute Resolution can assist with disputes involving issues such as:
- Construction and development contracts
- Payment and nonpayment disputes
- Change orders and additional-work claims
- Project delays and scheduling disputes
- Defective or allegedly defective construction
- Design and specification disputes
- Scope-of-work disagreements
- Cost overruns
- Claims involving contractors and subcontractors
- Owner-contractor disputes
- Supplier and material disputes
- Warranty and repair issues
- Insurance-related construction disputes
- Indemnity and allocation-of-responsibility issues
- Construction liens and related payment claims
- Commercial and residential construction projects
- Multiparty construction disputes
Every construction matter is different. The mediation process can be adapted to the number of participants, complexity of the project, stage of the dispute, and information the parties need to make informed decisions.
Why Mediate a Construction Dispute?
Keep Decision-Making With the Parties
A mediator does not decide who wins or loses. The parties retain authority over whether to reach an agreement and what its terms will be.
That control can be particularly valuable in construction disputes, where a court judgment may not address all of the parties’ practical needs.
Develop Solutions a Court May Not Provide
A mediated agreement can address more than payment of damages. Depending on the circumstances, participants may consider solutions involving:
- Completion or correction of work
- Repair protocols
- Additional inspections
- Revised project schedules
- Payment plans
- Releases
- Warranty obligations
- Allocation of future costs
- Agreements involving insurers or other participants
- Future work or business relationships
- Confidentiality
- Procedures for resolving later disagreements
This flexibility can create opportunities for resolution that may not be available through litigation.
Address Multiparty Problems Together
Construction projects frequently involve interconnected contracts and overlapping claims. Resolving only one part of a dispute may leave the larger problem intact.
Mediation can bring the necessary decision-makers together and provide a structured process for addressing multiple claims, defenses, and potential sources of contribution.
Consider the Full Cost of Continuing the Dispute
The cost of a construction dispute is not limited to the amount claimed.
Participants may also consider attorneys’ fees, expert expenses, management time, interruptions to other projects, effects on business relationships, reputational concerns, uncertainty, delay, and the risks associated with an eventual court outcome.
A well-prepared mediation gives parties an opportunity to evaluate these considerations before deciding whether an agreement is preferable to continued litigation.
Preparation Matters
Construction mediations are more productive when the participants have the information they need to evaluate the dispute. Depending on the matter, useful preparation may include identifying and exchanging important materials For some disputes, a site visit or other method of understanding the physical conditions may also be useful.
Before the mediation session, the mediator can work with attorneys and participants to identify procedural issues, necessary decision-makers, information gaps, logistical concerns, and potential barriers to productive negotiation.
A Strategic Approach to Construction Mediation
Effective construction mediation is not simply an exchange of numbers. The objective is to give participants a useful process for making informed decisions—not to pressure them into an agreement.
Complex and Multiparty Construction Cases
Some construction disputes cannot be effectively addressed as a simple two-party disagreement.
When owners, contractors, subcontractors, design professionals, insurers, and other participants are involved, mediation may require careful planning about attendance, settlement authority, information exchange, sequencing of discussions, and allocation of potential contributions.
Approved Dispute Resolution can structure the mediation process around the needs of the particular case, including the use of joint discussions and private meetings when productive.
In-Person and Virtual Construction Mediation
Approved Dispute Resolution offers flexible mediation options for parties and attorneys located throughout Florida and, where appropriate, elsewhere.
Virtual mediation can be particularly useful in construction matters involving participants, insurers, experts, and decision-makers located in different places. In-person sessions may be preferable when the circumstances of the case make face-to-face discussion especially useful.
The format can be selected based on the needs of the participants and the dispute.
Frequently Asked Questions About Construction Mediation
Does the mediator decide which party is right?
No. A mediator is a neutral third party and does not impose a decision. The mediator helps participants communicate, evaluate issues, explore potential solutions, and negotiate. The parties decide whether to reach an agreement.
When should a construction dispute be mediated?
Mediation can be useful before litigation begins, while litigation is pending, or after substantial discovery has occurred. The best timing depends on whether the parties have enough information to make informed decisions and whether additional litigation activity is likely to materially improve that information.
Who should participate?
The appropriate participants depend on the dispute. In addition to parties and attorneys, a construction mediation may involve representatives of contractors, subcontractors, developers, insurers, design professionals, or other organizations. Participants with necessary settlement authority should be available.
What should we provide before the mediation?
The most useful materials depend on the case. Contracts, plans, change orders, schedules, photographs, expert materials, damage calculations, and key correspondence may be relevant. The mediator can work with counsel before the session to determine what information would be most useful.
Can construction mediation address nonmonetary terms?
Yes. One advantage of mediation is the ability to consider solutions beyond a lump-sum payment, including repairs, completion of work, warranties, future obligations, timing of payments, allocation of responsibility, and other practical arrangements.
Can mediation work when the parties strongly disagree about the facts?
Yes. Complete agreement about the facts is not required before mediation can be useful. The participants can identify disputed assumptions, consider the evidence supporting their positions, evaluate litigation risks, and decide whether a negotiated resolution makes sense despite continuing disagreement.
Move the Project Dispute Toward a Solution
Construction disputes can consume money, management attention, and valuable time that could otherwise be devoted to completing projects and pursuing new opportunities.
Approved Dispute Resolution provides a structured and practical process designed to help participants evaluate their choices, address difficult issues, and explore solutions that make business and legal sense.
Schedule a construction mediation with Approved Dispute Resolution. Call 954-532-2329 or schedule online at www.approvedmediation.com.