WHY MEDIATION & PROCEDURE

Why Mediation & Procedure

Mediation is a serious alternative to court, arbitration or adjudication although mediations can take place after proceedings have started

Mediation is an intervention in a dispute with the purpose of attempting to resolve it and, unlike adjudication, an agreement reached at mediation is final.

It can offer a cost-effective and time-efficient method of reaching a resolution supported by expert mediators who understand the power of mediation in reaching a settlement that both parties are happy with. 

The mediator will help the parties resolve their dispute before a judge, arbitrator or adjudicator imposes a decision. Our accredited mediators are experienced in adjudication and, in suitable cases, advocate mediation in preference to this.

Mediation is flexible

In our experience, many disputes within construction and insurance can be resolved by expert mediation, ensuring that clients find a cost-effective and professional means to overcome problems for the benefit of all project stakeholders.
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Construction and insurance disputes commonly involve more than one party, for example employers, contractors and sub-contractors. Mediation is a mechanism for all parties to be involved in finding a suitable outcome. However, an adjudicator is only able to deal with one party and cannot generally decide more than one dispute. 

it is quick AND CONFIDENTIAL

Mediation can offer a quicker solution to finding a resolution than adjudication and our administrators are always on hand to make any necessary arrangements, sometimes at short notice. 

Mediation is less expensive than adjudication. It is much less expensive that court or arbitration. Mediation is private. Court proceedings and adjudication are not.

WHY APPOINT AN M4CI ACCREDITED MEDIATOR?

Our mediators are independent, neutral and do not take sides but will use their knowledge and experience of the law, construction and insurance sectors to rigorously test what each party is saying and ask why.

During the mediation day, the mediator will use their expertise to help parties decide on what terms a case might be settled, abiding by our code of conduct and our service guarantee. 
The entire process is confidential and without prejudice subject to limited exceptions.

If parties are unable to reach agreement, they can still go to court, arbitration or adjudication. Sometimes mediation takes place when proceedings have already started.

Unlike adjudication, arbitration or court proceedings the parties can talk to the mediator in private and in complete confidence.

Voluntary

A party cannot force another party to mediate 

However, the potential benefits of mediation outweigh the alternatives. 

The Court does not have the power to order mediation but does have discretion to penalise a party who unreasonably refuses a request to mediate. 

The sanction the court may impose will be in terms of legal costs; it is possible that the Court will order a successful party to pay the other side's costs if the Court decides that the successful party unreasonably refused an offer to mediate. 

A party may invite the other party(s) to mediate. An example of a letter that can be used to make an invitation to mediate can be found here.

PROCEDURE

A mediation organised by M4CI has 4 stageS

1. Appointment of the mediator

Our admin team will send the terms of appointment for agreement by the parties and arrange the date and venue.
The parties, M4CI and the mediator enter into a mediation agreement. 
Once the parties have signed the mediation agreement and returned it to our administration team the mediation can proceed to stage 2.

2. PRE-MEDIATION

The parties send the mediator the materials needed so that the mediator can understand the case. 

The mediator may hold a pre-mediation telephone call if clarification is needed.

3. Mediation settlement meeting

The day of the mediation. There are no set procedures but the mediation agreement sets some ground rules.

4. Attempt at Settlement

If the parties are able to reach agreement this often occurs at the mediation settlement meeting, but sometimes the parties settle later.

If settlement is not reached on the mediation day, the mediator will assist the parties to settle later for an additional fee.
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