Construction mediation UK: the cases behind the service

A construction dispute can start with a snagging list and end with a counterclaim that dwarfs the unpaid invoice. By then the site may be idle, legal bills are mounting and both sides have spent months arguing about what the contract meant. Construction mediation gives the people involved a confidential setting to work through the evidence and negotiate terms they can live with.

At Effective Dispute Solutions (EDSL), we work with parties in disputes about defective work, final accounts, delay, development funding and professional responsibility. If you want to see the scope of the service first, visit our construction disputes mediation page. Below are five published matters that show what parties actually had to resolve. The details are case summaries, with no guarantee that another dispute will settle on the same terms or timescale.

Five construction disputes that reached a settlement

1. Defective concrete floors and a disputed final account

A subcontractor sought a £40,000 final payment. The main contractor said concrete floors in 15 of 25 commercial units were defective, cited remedial costs approaching £90,000 and brought a counterclaim approaching £140,000, including other items and legal fees. The dispute had been going on for 13 months.

At mediation, the parties examined who had chosen the materials, what other work the subcontractor had completed, how the invoices had been calculated and whether a stated late penalty reflected a real cost. The picture changed for both sides. The parties settled for £20,000 in one day. The account does not establish that either party was wholly right on liability; it shows why testing the figures mattered. Read the contractor and subcontractor case study.

2. A charity’s £270,000 refurbishment claim

A charity said a refurbishment of its multipurpose centre had left defective work and did not match the drawings. It sought rectification and damages capped at £270,000. The construction company said it had repeatedly sought instructions on discrepancies in the brief and received incomplete answers.

After a day of mediation, the contractor agreed to correct its mistakes and the snagging items, and pay 80% of the charity’s legal fees. The charity agreed to pay £75,000 towards issues attributed to its own instructions. The dispute had already lasted eight months. This was a practical settlement with work still to be done, rather than a simple cheque from one side to the other. Read the charity refurbishment case study.

3. A £2.3 million development halted by an investment dispute

Developers had put £2.3 million into a property scheme. An investor’s first £350,000 contribution was written into the contract; the alleged second £350,000 commitment was oral. When the further funding did not arrive, the work stopped. The investor disputed any obligation to pay more and wanted the original payment returned.

The settlement took a different route from the original investment plan: the investor agreed to buy the site and complete the development. The developers could clear debts, pay their partners and exit the project with a small profit, according to EDSL’s account. The dispute had lasted 18 months; the mediation took a day. Read the property development case study.

4. Eight months of disagreement, then five hours of mediation

In another construction matter, the claimant had spent £12,000 on legal fees before mediation and the defendant £15,000. After eight months in dispute, the parties resolved the matter in a five-hour mediation, according to EDSL’s published case note. That is £27,000 already spent on legal fees before the session, not a verified saving produced by it. The public case note gives limited detail on the underlying claim and final terms, so it should not be used to imply more. Read the five-hour construction dispute case study.

5. A two-year dispute with £128,000 in legal fees already incurred

EDSL also reports a construction dispute that had run for two years before a one-day mediation lasting 15 hours. The claimant had already spent £63,000 and the defendant £65,000 on legal fees. Those figures total £128,000 in costs incurred before mediation; they are not money recovered or a measured saving. The published note does not give the underlying claim or detailed settlement terms. Read the two-year construction mediation case study.

Which EDSL construction mediator should you consider?

The right fit depends on the live issues. An alleged defect may need somebody comfortable reading a quantity surveyor’s report. A final-account row may need a mediator who can keep both the calculation and the commercial relationship in view. These profiles are starting points for discussion with EDSL, not a ranking of individual mediators or a claim that any named person handled the cases above.

For building, valuation and technical issues

Richard Cavadino is listed by EDSL as a chartered quantity surveyor, a Fellow of RICS and a RICS-accredited mediator, with construction and property among his specialisms. Bruce Bourne is listed as a chartered surveyor and mediator with construction, property and professional negligence specialisms. Ask EDSL which mediator has the experience relevant to your project’s specific technical issues and is available to act independently.

For contracts, engineering and overlapping claims

Martin Collingwood is listed as a solicitor, mediator, arbitrator and adjudicator whose specialisms include construction, engineering and contract disputes. Dr Peter Fenn is listed as a quantity surveyor, adjudicator, arbitrator and mediator with construction and engineering experience. They may be worth discussing where contractual and technical arguments meet. Their availability and suitability need checking for each case.

For a wider commercial dispute around the project

Harvinder Singh Bhurji is EDSL’s director and a commercial mediator accredited since 2002, according to his profile. A building dispute can spill into an ongoing trading relationship, finance or another project. Tell EDSL what else is at stake so it can suggest a mediator with a suitable background. A specialist’s credentials do not replace a check for conflicts of interest and agreement from all parties.

How construction mediation works

Before the meeting

The parties agree to mediate, select a neutral mediator and settle practical arrangements such as timing, location and fees. Each side can send a concise account of the dispute, the contract, key correspondence, reports and a calculation of the sums claimed. If an adjudication or court case is under way, get advice on any applicable deadlines before changing course.

On the day

The mediator helps each party test the evidence and discuss possible terms. Some discussions may be joint and others private. Depending on the case, a settlement might combine a payment with remedial work, a revised timetable or an agreed exit from a project. The mediator does not decide who wins. The parties decide whether to settle.

If terms are agreed

The terms should be recorded clearly and reviewed with advisers as appropriate. Include dates, payment mechanics, responsibility for any remedial work and what happens to existing proceedings. If there is no agreement, the parties can consider their remaining options with their advisers.

When to consider mediation in a building dispute

You do not have to wait until both sides have filed lengthy claims. In the cases above, parties had already spent eight months, 13 months, 18 months or two years in dispute before mediating. Early conversations can be useful once the parties know enough about the defects, delay or account to negotiate sensibly. A mediator can also be brought in later when a case has become stuck.

If your dispute concerns residential building work, read EDSL’s building mediation service page. For a wider commercial claim, the construction disputes service page sets out the areas EDSL handles.

Talk to EDSL about your construction dispute

Tell us what the project involved, who is in dispute, what each side wants and whether any proceedings or urgent deadlines apply. We can discuss the type of mediator who may fit the issues and what arranging a session would involve. Request a free consultation with EDSL.