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Mediation of Construction Disputes

De
192 pages
This book is written for users of mediation, whether they be a party, an advisor or an expert. It should also be of help to commercial mediators who have no specialism in construction. Its aim is to encourage confidence in the mediation process and to ensure that those who do use mediation to resolve their disputes do so effectively and so are able to maximise the opportunities that mediation offers.
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Contents
Acknowledgements Introduction
Chapter 1 The Construction Industry Is Great at Dispute Creation Contract The no contract scenario The is there/is there not a contract scenario Incompatible contracts Allrisk contracts Unrealistic performance criteria Finance A lowmargin industry Claim culture The squeeze game Culture Adversarial Fragmented High failure rate Complexity Incurable optimism External factors Weathersensitive Consultants Government legislation Why people get into disputes Communication Personality Interpretation Chapter 1 in a nutshell
1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 1.2.1 1.2.2 1.2.3 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.4 1.4.1 1.4.2 1.4.3 1.5 1.5.1 1.5.2 1.5.3
Chapter 2 The Dispute Resolution Options 2.1Consensual methods of resolving disputes 2.1.1Negotiation 2.1.2Conciliation 2.1.3Mediation
v
xi xiii
1 3 3 4 5 5 6 7 7 7 8 8 8 9 9 9 10 10 10 11 11 12 12 13 14 15
17 19 19 19 19
2.1.4 2.1.5 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.4 2.4.1 2.4.2 2.4.3 2.5 2.5.1 2.5.2 2.5.3
Contents
Arb/Med and Adj/Med Court settlement procedure Resolving disputes through recommendation Neutral factfinding Dispute review boards Early neutral evaluation (also judicial appraisal) Mediator recommendation Conciliation Imposed solutions to disputes Med/Arb and Med/Adj Adjudication Ombudsman Expert determination Tribunals Arbitration Litigation Why traditional methods fail the parties Inherent injustice Cost and time Adjudication is not the saviour The better options for dispute resolution Consensual processes Partnering Dispute avoidance Chapter 2 in a nutshell
Chapter 3 The Case for the Mediation of Construction Disputes Better deals Speed and economy Flexibility in process and outcome Finality of outcome Mediator added value Getting off the treadmill Ongoing relationships Day in court Commercialv.Legal The arguments against mediation It adds another layer of cost It is too touchyfeely Mediation is nonbinding so has no teeth Mediation is all about compromise Mediation is all talk, no commitment Chapter 3 in a nutshell
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.10.1 3.10.2 3.10.3 3.10.4 3.10.5
vi
20 20 21 21 21 21 22 22 23 23 23 23 24 24 24 24 25 25 25 26 27 27 27 27 28
29 29 32 33 33 34 35 36 37 37 38 38 38 39 39 40 40
Contents
Chapter 4 Preparing for Mediation Typical framework Stages of mediation Preparation by the mediator Preparation by the parties When to mediate How long should the mediation take? Who to choose as mediator Mediator fees Comediation Assistant mediators Conflicts of interest Documents Where to mediate Who attends? Authority Who presents? Dry run? Premediation meeting Premediation contact The mediation agreement Risk analysis Anticipate the settlement Chapter 4 in a nutshell
4.1 4.2 4.3 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7 4.4.8 4.4.9 4.4.10 4.4.11 4.4.12 4.4.13 4.4.14 4.4.15 4.4.16 4.4.17 4.4.18
Chapter 5 Presenting at the Mediation 5.1Arrival 5.2Premeeting 5.3Initial joint meeting 5.4Using the joint meeting 5.5Exploring stage 5.6Giving and receiving information 5.7Idle time 5.8Others shoes 5.9Nonfinancials Chapter 5 in a nutshell
Chapter 6 Negotiating at the Mediation 6.1Negotiation zones 6.2Reviewing 6.3Bottom lines 6.4Negotiation strategy
vii
41 41 41 44 46 46 46 47 49 50 51 51 52 54 55 56 58 58 59 61 62 63 65 66
67 67 68 69 71 73 75 76 77 78 79
81 81 82 83 84
6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12
Contents
Incompatible styles First offers Offer logic Getting into deadlock Painpain Keeping options open Nonfinancials And finally Chapter 6 in a nutshell
Chapter 7 Concluding the Mediation 7.1Finality 7.2Deals with dignity 7.3Partdeals 7.4No deal 7.5Writing the settlement agreement 7.6What can go wrong? 7.7Coolingoff period 7.8Mediator recommendation 7.9Mediator liability Chapter 7 in a nutshell
Chapter 8 Roles in Mediation (Who Does What?) 8.1Client 8.2Legal advisor 8.3Counsel 8.4Experts 8.5Consultants 8.6Support staff 8.7Mediator 8.8Assistant 8.9Comediator Chapter 8 in a nutshell
Chapter 9 Avoiding Disputes in the Construction Industry 9.1The positive side of conflict 9.2Understanding  valuing  cooperating 9.3Creating a culture that is positive 9.4Twelve rules and challenges
viii
84 86 86 87 88 88 90 90 90
91 91 91 92 93 95 96 97 98 99 99
101 101 102 103 105 106 107 108 109 109 110
113 113 113 114 115
9.4.1
9.4.2
9.4.3
9.4.4
9.4.5 9.4.6 9.4.7 9.4.8 9.4.9
9.4.10
9.4.11
9.4.12 9.5
Contents
Establish clear, simple and constant lines of communication Establish clear roles, responsibilities, accountabilities and systems Practise (and therefore model) openness/ transparency Build trust from the start; cooperate rather than confront Acknowledge problems, dont bury them Treat mistakes as learning points, not blamemakers Get the headline agreed Listen, and show that you have heard Establish what parties need, rather than what they claim Involve a neutral early when disagreements are unresolved Reevaluate agreements and headlines in the light of resolution Recommit to the relationship/contract Partnering Chapter 9 in a nutshell
Chapter 10 The Mediation Landscape Deal mediation What is it? What does the deal mediator do? Difference between a deal mediator and dispute mediator Project mediation Dispute mediation Facilitation Preparing for the facilitation Agenda Structure of the day Open space Role of mediator as facilitator Consensusbuilding Bespoke mediation processes Construction Conciliation Group (CCG) RICS Neighbour Dispute Service Tiered resolution Chapter 10 in a nutshell
10.1 10.1.1 10.1.2 10.1.3 10.2 10.3 10.4 10.4.1 10.4.2 10.4.3 10.4.4 10.4.5 10.5 10.6 10.6.1 10.6.2 10.7
ix
115
115
116
117 117 117 118 118
119
119
120 120 121 122
123 123 123 124
125 126 127 128 128 129 129 129 130 130 131 131 132 133 133
Contents
Chapter 11 Conclusion  How to Win at Mediation 11.1Prepare well 11.2Chose the right mediator 11.3Get the best out of the opening joint session 11.4Cooperate 11.5Have a drink! 11.6And remember . . .
Appendices Summary of relevant law Risk analysis checklist Decision tree Premediation checklist Typical mediation agreement Typical settlement agreement Model Settlement Agreement and Tomlin Order Mediation providers
x
135 135 135 136 136 137 137
139 141 148 150 153 155 157 158 162