Mediation of Construction Disputes

Problems and disagreements arise in most major construction projects. Too many of these challenges will result in needless litigation. Leading authorities in Ontario assert that the cost of litigating a construction claim with a value of $100,000.00 or less will typically exceed the value of what is at issue in the claim. The time required to get the matter on to trial and obtain resolution (assuming that there are no appeals and no need to use enforcement proceeds to obtain payment on a Judgment) will frequently exceed the time spent actually completing the construction on the project.

In addition, disputes divert the energy and attention of all disputants from the job or project at hand and from other projects or jobs that are on the horizon. Valuable business relationships that have been cultivated for years on any number of successful projects are jeopardized and often ruined beyond repair. Similarly, reputations are lost or tainted for years to come in an industry where one's reputation can be the most valuable business asset you have.

Both litigation and arbitration can produce unpredictable and sometimes unfair or devastating outcomes. There is some dissatisfaction with traditional construction arbitration, which is seen by many to render unjustified compromise decisions, a form of "palm tree justice" that the parties had not bargained for in the arbitration process. Preparation and presentation at arbitration hearings can be time consuming and costly, with some hearings going on for months or even years.

Construction Mediation through Agree Dispute Resolution can solve many of these problems for you. Mediation is typically quicker and less expensive. It allows the players in the construction industry to maintain control over the resolution of their dispute and more importantly, empowers them to do what people in the construction sector do best -- problem solve for optimal outcomes.

The early exchange of critical information allows parties and their counsel to size up the situation before all the costs of litigation have been expended and everyone has "dug in" to their position. As an added bonus, mediation provides for the continuation of valuable business relationships.

Agree Dispute Resolution's experienced, impartial mediators help the parties to arrive at a mutually acceptable, binding, negotiated agreement. The mediator has no authority to make a decision, but assists the parties overcome obstacles to settlement through evaluation and facilitation.

The Components of Agree's Construction Mediation:

Experienced Mediators: chosen for the task at hand. For example, a technical problem may call for a mediator with on site "hands on" experience in the construction industry. A difficult priorities problem involving mortgages and multiple lien actions may call for a mediator with background in the construction Lien Act litigation. Through its partners and its network of associates, Agree can find the appropriate person to get the job done for you.

Facilitation: Agree Dispute Resolution mediators can facilitate agreement by helping parties to focus on their joint and individual interests and needs, thereby improving communication and trust and reducing hostility that otherwise might cloud judgment and act as a barrier to settlement.

Evaluation: Where negotiations become deadlocked by disagreement over key factual or legal issues, Agree's mediators will assist the parties in evaluating their claims to assist each side in assessing its risk if the matter proceeds to arbitration or trial.

If you want to bring a matter forward for mediation, simply complete the online application form, or call Agree and provide the particulars by phone.