Three Strong Reasons Why Contractors Should Mediate Their Disputes

Conflict can be a huge expense for building contractors. It can cost a contractor thousands of pounds in lost time, delayed payment, lost wages, and court costs. Conflict can also bring a lot of unwanted stress, bad publicity and loss to reputation which can potentially contribute to loss of business and clients.

​A mediator can help a contractor eliminate these potential hazards and pitfalls that conflict brings. This article will look at 3 very impactful ways in which a mediator or conflict resolution professional can help contractors save money and grow their business.
​

Mediators can save time and legal costs
Anyone that has been in a contractor dispute knows that it can be a long drawn out process that can incur expensive legal costs. However, mediation can dramatically cut hefty legal costs, and speed up the resolution process. Mediation is quick and efficient. 

A good mediator is able to get the parties together quickly and work to resolve the dispute in a matter of hours instead of months. They are hired to work with both parties to come up with a solution. Thus court scheduling, and working with the lawyer’s attorney's calendar is not an issue with mediation.  A mediator will sit down with all parties quickly and at their convenience to hammer out a solution that works for everyone.

Additionally, mediation is cheaper than hiring a lawyer and the potential added court costs. Typically, a mediator fee is split by all the parties involved. Therefore, you are not stuck with a large bill on your own. Since mediation can be done in hours, you are not charged for weeks of fees that can incur with lawyers. Because of the mediation's speed and billing structure, it can save your thousands of pounds in out-of-pocket expenses.

More importantly, mediators can be brought in early in before the conflict escalates. This can save a lot of time, money and energy and head off a lot of potential problems that can come from not letting conflict remain unresolved.

Mediation can save your relationships
Let's face it; disputes can hurt your relationships with clients, colleagues, employers, employees and partners. The traditional legal avenues do little to preserve these relationships. However, a mediator is equipped to help you preserve these relationships. Mediators are trained to look at the conflict's deeper issues, the parties' personalities, and needs. They look for solutions that will preserve and ultimately strengthen relationships. A mediator can also look at ways to prevent future disputes that may arise between the parties, and help them plan a way to work through them in the future. This can save you thousands in future bids, and contracts.

Mediation can help save your reputation
Mediation is confidential, thus everything that is discussed cannot be used to hurt you or your company. Furthermore, because mediation is relationship focused, the ability of coming out of the dispute in a good relationship with the party will help improve your reputation.

Mediation will show your clients that you are pro-active about resolving disputes. It will show that you take it seriously, and will help diffuse an adversarial mind set with the other parties. Therefore, with every successful mediation, your reputation will grow, and referrals will come. Everyone likes to work with a professional that can resolve problems quick, and effective. Mediation gives you this ability to work though disputes quickly while protecting your interests and business.

Using a mediator for all of your contracting disputes will help strengthen your relationships with clients. It will build you a strong reputation, and save you thousands of pounds in unwanted legal fees, court costs and time. Furthermore, it will show your clients that you are serious about resolving disputes, while making you look more professional.

It will also speed up payment for disputed work so that you can make a bad situation a satisfied customer. Therefore, consider placing a mediation clause in your contracts for all of your disputes, and develop a relationship with a mediator. Mediation is a quick and cost-effective solution that can save you money and make your business grow.

Call for our help today