Why Private Dispute Resolution is Often Chosen Over Litigation

Why Private Dispute Resolution is Often Chosen Over Litigation

Jun 13, 2019

Summary: There are three common methods to resolve construction disputes in today’s industry.

When it comes to disputes in the construction industry, one of the most efficient way and time-consuming ways to resolve them comes in the form of private mediation. With minimal litigation costs, the disgruntled parties will subject themselves to a sit-down overseen by a neutral third-party mediator. There are three basic methods commonly used: private mediation, arbitration, and private settlement.


When a mediator gets involved, he or she will function as a neutral party that cannot take sides or decide who is in the right or wrong. Rather, the mediator’s job is to lead the parties to a mutually beneficial resolution. Each party can also obtain legal counsel if they wish, although it is not mandated. There are a number of advantages to mediation that include personal conflict resolution, reduced costs, and controlling each party’s fate.


During arbitration, either party can choose a neutral arbitrator to handle the entire dispute or choose someone to select a neutral party. The advantages to this method include relaxed rules of evidence, and quicker results. It’s a cost-effective way to settle.


Choosing the route of settlement, the tactics mentioned above are combined into one. This is extremely useful when both parties are in the midst of litigation and realize that a settlement could be more favorable. The settlement facilitator will split both parties and offer a number until there is a mutual agreement. This is an extremely cost-effective way to reduced litigation costs and can end negotiations rather quickly.

Blog submitted by Lyle Charles Consulting: Searching for construction consulting with an expert? Contact the folks at Lyle Charles Consulting to learn more.