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Any construction project is subject to conflict among the prime contractor and the many subcontractors and suppliers. Conflict is also common among the other project participants, such as: ● Construction Manager vs. construction contractor ● Architect/Engineer vs. construction contractor ● CM vs. A/E Projects with multiple prime contracts add a level of complexity that magnifies the likelihood of disputes. These conflicts ultimately result in cost and schedule impacts that lead to disputes between the owner and prime contractor(s). For example, an owner may not be concerned about a brewing dispute between the prime contractor and its drywall subcontractor; or, there may be chronic conflict between the construction contractor and the A/E over processing of submittals. The owner’s and contractor’s interests are in jeopardy once such disputes escalate to the point of delaying the project or causing cost overruns. Mediation is sometimes attempted only as a last-ditch effort to settle a dispute immediately prior to adjudication. By that time, hostilities and legal costs have risen to a level that makes settlement difficult. Mediation is much more effective when used as a pro-active management tool to keep conflict from escalating. Mediation should be applied early in the life of a dispute and at the lowest level involved in the dispute. For example, a dispute at the foreman level should be resolved before it escalates to involve superintendents or higher-level supervisors.
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When to Use Mediation |
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© 2007 JLMcDonald Conflict Resolution Services. All rights reserved. |
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Conflict Resolution Services |
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JLMcDonald |