Mediation of Construction Disputes

Mediation is particularly suitable for conflicts between construction partners, especially when conflicts arise during a construction project.

This is because building conflicts often mean high costs for external advisors while the projects are delayed, collaborative relationships are burdened or broken, and the reputation of the company or the builder suffers.

Mediation (and conflict prevention start-up) of construction projects is conducted in Danish, German and English.

The goal of mediating in building conflicts is for the parties to reach an agreement in the best, most time-efficient and cost-effective way possible.

One of the most powerful things about mediation is that all of the parties' interests can be included. This means that values other than direct monetary amounts are also included in a solution.  "Values other than direct monetary amounts" are, for example, collaborative relationships, site security, relations with neighbors and other stakeholders, relations with the press, insurance issues, mutual assistance for upcoming tasks and much more.

 

How does it work?

Prior to a mediation meeting, all parties are contacted.  The parties must agree to seek a solution through mediation and they must be open to focusing on the future, and not just the past.

If the parties want mediation, the meeting begins at the construction site. In this way, the foundation of the mediation will be focused on the goal: to discuss and solve the building process, extra work hours or other outstanding issues.

A mediation meeting usually lasts half or a full day and the costs are shared equally between the parties.

Mediation/conflict mediation of construction matters respects the legal framework in place. This applies with party agreements, ABT 93, AB 92 and ABR 89, public law regulations, insurance conditions etc. Discretionary declarations can, in many cases, be useful to include in the mediation meeting, if there is a consensus on the discretionary assessment. As Buhl Mediation does not provide legal advice, it may be relevant to get the parties' legal department or adviser involved in the process.

It is important that the final agreement "leaves no stone unturned"; but that it is not the law that dictates the results. For example, evidence assessment does not matter during mediation.

Full confidentiality and discretion apply to all contributors. Attending the mediation meeting is optional.  Buhl Mediation has yet to experience a mediation that has been stopped.

 

Prices

Payment with a fixed offer or an hourly rate is agreed upon.

As a general rule, mediation is paid by the parties in equal amounts, no matter the final outcome.

Preliminary discussions - free of charge

Preparation (planning, reading materials and the like), hourly rate

1.000 DKK + VAT

Mediation meeting, indicative hourly rate

2.200 DKK + VAT

 

Note: "Indicative hourly rate" is due to the fact that the hourly rate differs with any fixed offer.
Note: Some cases are covered by legal or advisory liability insurance.

Prices are valid for 2019.