Mediation is a dispute resolution method.
The method is used as an alternative to legal litigation, arbitration or judicial decisions. The company or parties in a building case thus save costs on external advisors and arbitration/litigation. And in most cases, it leads to valuable collaborative relationships that continue for the common good.
The method can also be used when entering into contracts, such as owner agreements or performance descriptions (construction and IT contracts).
The goal of mediation is to resolve disputes and conflicts in the most cost-effective way possible!
The officially recognized definition of mediation in Denmark is:
"... a confidential conflict resolution method in which one or more impartial third parties help the parties find and negotiate a satisfactory solution through a structured process. The broker sets a framework and leads the mediation, but makes no decision in the matter".
Mediation is brought about by one or more parties in a dispute addressed to a professional mediator. The mediator will then contact the people involved and make appointments for a meeting. It is the mediator who sets the physical and the technical framework of the meeting, and who guides
the parties through the meeting.
A mediation typically lasts one day. It ends with a binding agreement between the parties. The parties pay the mediator' fee equally. If a party has legal insurance, the insurance company must accept that the insurance covers mediation.
Party representatives (lawyers, accountants, construction experts or other) are often good support during mediation. Their involvement means that the parties, throughout the meeting, can get advice when needed.