Difference between Arbitration and mediation | 101 Important

Arbitration and mediation are the most famous conflict resolution methods after the litigation. Unlike the litigation process, these methods resolve conflicts without harming the relationship between conflicted parties. This article discusses the difference between Arbitration and mediation and the similarity between arbitration and mediation.

What is the process of arbitration?

Based on the presented evidence and explanations, the arbitrator can make a final decision, and both parties are bound to accept the arbitrator’s decision. Therefore appointed arbitrator should be an expert on the resolving conflicts reasonable way.

Appointing of an arbitrator for contractor dispute can happen,

• The initially agreed agreement (under the contract) by the parties
• By statue (by government act or law)-Government acts may recommend when and where to resolve disputes using arbitration(The Arbitration Act 1996).
• By order of the court -Court can order to resolve conflict such as minor claims, by using arbitration

Construction arbitration to resolve contractor dispute- Main characteristics

1. lesser cost than litigation and arbitrator can decide whom to bear the costs of the process or how to divide the cost of the process,
2. Because of the arbitrator’s given power he or she can thoroughly make a final decision,
3. Finality is guaranteed since any of the party has a restricted chance to challenge the decision.
4. Transparency will be there hence arbitrator should point out the reasons for the final decision made,
5. All the matters and evidence presented will be confidential,
6. The final decision will be made based on the presented evidence.
7. Since appointed arbitrator is an expert of the selective discipline process will have more pace.

Read our full article regarding arbitration with interesting case study summary here

What is the process of Mediation?

In mediation, all the parties agree and appoint a neutral third party (person) as a mediator. The mediator should be a qualified and expert person in the industry. Also, the selected mediator has to be acceptable by both parties

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Originally published at https://quantitysurveyor.blog.