Question

 

 Explain mediation and arbitration processes in construction industry. What are some of the relevant legal provisions?

01 Mar 2026
Answer :
Word Count : 487
Mediation and arbitration are important alternative dispute resolution (ADR) mechanisms widely used in the construction industry to resolve conflicts efficiently without resorting to lengthy litigation. Construction projects involve multiple stakeholders such as owners, contractors, subcontractors, consultants, and suppliers, and disputes commonly arise over delays, cost overruns, quality issues, variations, and payment claims. ADR processes help maintain working relationships, reduce costs, and ensure faster resolution compared to court proceedings. Mediation is a voluntary and non-binding process in which a neutral third party, called a mediator, facilitates communication between disputing parties to help them reach a mutually acceptable settlement. The mediator does not impose a decision but assists in clarifying issues, exploring interests, and generating options for compromise. In construction projects, mediation is often preferred at early stages of disputes because it is flexible, confidential, and preserves professional relationships. The process typically begins with the selection of a mediator, followed by joint sessions
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