Purchase agreements for construction, development, or real estate-related projects frequently offer parties the option of early mediation for settling a dispute before proceeding to arbitration or court litigation. While in my experience early mediation sessions tend to fail, additional mediation sessions held months later have a better chance of succeeding. In my latest column for
Can We Avoid Court? Construction Mediation Agreement Considerations
Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on December 15, 2022.
A common feature of construction contracts is a clause requiring formal mediation of disputes relating to the project. Sometimes the clause is aspirational, merely “requiring” that the parties consider mediation. Other times, however, the clause is designed as a binding
Strategic Tips That Parties Should Consider When Mediating Disputes
Nearly all construction industry standard form contracts require mediation as part of their dispute resolution provisions. Often confused with arbitration, mediation is a negotiation facilitated by a neutral third party. Unlike arbitration — a proceeding like a trial — mediation does not result in a final binding decision. And the mediator typically does not have
Why Early Mediations Often Fail, and Possible Remedies
Unlike 20 years ago, when a mediation – a commonly used route for resolving disputes in the construction claims process – was typically held close to the trial date, today the prospect of an early settlement can lead to the parties often seeking multiple mediation sessions over the course of a dispute. Additionally, construction and
Reimagining the Dispute Resolution Provision in Construction and Design Contracts
In construction projects, experienced owners, contractors, or designers know that disputes will almost invariably arise — even when the parties have the best of intentions. And they understand that detailed contract provisions to resolve those disputes can have major benefits if they are properly drafted to suit the project, parties, and types of dispute most
Dispute Resolution for Developers
The nearly 60 cranes towering over Seattle’s skyline may be a sign of the building boom in the city, but they also could portend a flood of construction claims arising from the projects they help build. Despite the frequency of construction claims, many developers are not familiar with the dispute resolution methods available to them