Construction is costly enough without minor conflicts and disagreements bursting into full blown disputes. Disputes between engineers, architects, contractors, subcontractors, suppliers, and/or owners increase the use of all parties' precious resources that is, time and money.
In my Maryland mediation practice, there are many fact patterns which are heard again and again in construction mediation, such as: the simple act of an owner visiting a construction site causing workers to think they are being second guessed rather than understanding the homeowner is excited about the completion of his/her project and wants to watch the progress; or home owners hiring subcontractors, whose prices appear more than competitive, which fails to camouflage underlying problems, such as the subcontractor's inability to accurately bid the cost of materials and labor, or shoddy performance issues; or architectural firms hiring subcontractors to provide services for agreed upon prices, then halfway through the job subcontractors running into unforeseen difficulties and refusing to continue without more money.
Mediation is a process which assists parties resolve disputes without litigation. In construction mediation, the mediator, a neutral, third party, assists the parties with such issues as contract claims and construction disputes. The aim of construction mediation is to assist the parties to resolve their disputes in as timely and cost effective a manner as possible, while maintaining the business relationship to the extent necessary to continue the project.
Construction mediation helps parties resolve construction disputes before the cost of the dispute exhausts the parties' resources and destroys the business relationship. A construction mediator facilitates communication between what are often "very strong personalities," who are not interested in compromising or "splitting the difference," and guides the parties' heated debate on a journey from the unrealistic to the rational, ideally arriving at a negotiated resolution.
