Construction Lawyer & Building Solicitors Sydney | Contracts Specialist Law Firm

What’s the Difference between Mediation and Arbitration?

Sometimes it can be confusing which resolution between mediation and arbitration suits best for your problem. But first, what’s the difference between them? And which resolution can save you more time, effort, and money?

What is Mediation?

Mediation is an alternative dispute resolution facilitated by an independent third party. This can be done due to the court’s order, an agreement written in the building contract or both parties volunteering to resort to this resolution. This is more like a negotiation between both parties which all of them must agree once they come up with a resolution.

For this type of dispute resolution, the mediator must does not decide for both parties nor take sides. Instead the mediator may suggest or even come up with facts that might not have been considered by either party. The important thing is, they must reach to an agreement and all parties must agree with that settlement. In addition, most mediators are senior or retired lawyers and judges.

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Advantages of Mediation

  • Confidential
  • Less formal
  • Less expensive compared to arbitration and litigation
  • Quicker
  • More flexible

One obvious disadvantage of mediation is that it may not guarantee the best results since it depends on how willing the two parties can go to come up with an agreement. Nevertheless, with its growing popularity among builders and owners, lots of money, time, and effort were saved through mediation.

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What is Arbitration?

Arbitration is another alternative dispute resolution where a third party makes a binding decision. Its difference from litigation is that arbitration is done outside of the court. An arbitrator looks into the legal rights of each party and hears both parties to come up with a decision.

Similar to mediation, this process is inexpensive and doesn’t take too much time for the whole process. However, there can also be instances where the process might take longer than expected, depending on the kind of dispute being settled.

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Advantages of Arbitration

  • Confidential
  • Inexpensive compared to litigation
  • Quicker
  • More efficient than the usual court process
  • More flexible

Just like in a court trial, there are certain procedures that can also be done in an arbitration such as hearings, pleadings, and cross examinations. Moreover, this can done voluntarily or if it is included in the agreement in the contract.

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What is the Difference between Mediation and Arbitration?

  • Arbitration is a more structured process than mediation. Because there are procedures in arbitration that are very much alike in a court trial, it’s safe to say that arbitration has a bit formality in its process than mediation.
  • Basically, mediation is just a facilitated negotiation between disputing parties requiring agreement form all parties while arbitration involves a third party imposing a decision for both that must be enforced.
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Who can assist with Mediation and Arbitration?

Mediation ad arbitration are both legal matters that must not be done without the guidance of an expert. Hence, a building and construction lawyer is the best option to ask for help to make sure that you are taking the proper steps in your situation.

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What is the Role of Building Lawyers in Mediation and Arbitration?

Legal Advice

When a dispute starts to escalate, you immediately need the help of a legal expert. Taking the right legal advice is a step forward to make sure you don’t mess up. No one wants to another problem to be born out of the current problem.

Client Representation

Mediation and arbitration could be an intimidating thing. That’s why it helps that you get a helping hand with how you can better enforce your rights and protect your interests. In arbitrations, lawyers are allowed to represent their clients. This somehow eases the burden for both parties as their rights can be well-asserted by having their building lawyers represent them.

How can Contracts Specialist help with
Mediation and Arbitration?

Contracts Specialist is a Sydney-based law firm specialising in building and construction. Our areas of expertise include building dispute tribunals and trial court. You can definitely count on us to guide you in your mediation and arbitration process.

Our principal lawyer, John Dela Cruz, deals with Building Disputes, Construction Contracts, Security of Payments, and Strata Law day in and day out. With his vast knowledge and over 10 years of experience, you can be confident that you are getting the right legal advice. So if you think you’re in a potential building dispute, don’t hesitate and call Contracts Specialist now.