Construction Law: What to Do When Mediation Fails

Mediation is considered an alternative dispute resolution method to avoid expensive and time-consuming litigations and court proceedings to resolve a legal dispute between 2 parties. In the case of Construction and Contractual Law, such parties are normally contractors/sub-contractors vs clients/project managers. During a mediation, a mediator is appointed to act as a guide to dispute resolution, working towards finding a middle ground between the involved parties to avoid any further dispute resolution methods and come to an agreement on their own terms. Today, we will talk about your options in the case where mediation failed to bring both parties to an agreement.

Alternative Dispute Resolution for Construction and Contractual Law Disputes

In South Africa, most major construction agreements include adjudication as an alternative dispute resolution mechanism. Adjudication is a procedure where an adjudicator is appointed as a third party to rule on the matter of the legal dispute at hand. Their decision is legally binding and the outcome of such a procedure can also be used in arbitrations and litigations. Arbitration is also a common choice regarding alternative dispute resolution methods, where both parties agree to an arbitrator to resolve the dispute. Arbitrators should be experts in their fields, which in this case would be Construction and Contractual Law, along with South Africa’s construction industry. Therefore, if mediation did not work out, you can consider adjudication or arbitration as alternatives to avoid litigation and expensive legal fees involved with such a process.

How Can Allardyce & Partners Attorneys Assist Contractors/Sub-Contractors?

Contractors and sub-contractors in the construction industry in South Africa would commonly face a situation where clients and project managers fail to uphold their end of the contract in terms of compensation and payment. We can offer our services on a “no win, no fee” contingency when representing contractors/sub-contractors in such disputes. We also offer an extensive range of legal services to assist with contracts, employees, and other legal elements of your business. Please contact us on 011 234 2125 or email us at enquiries@allardyce.co.za with any enquiries on how we can assist you when mediation fails during a legal dispute.