Construction project disputes: when mediation pays off

Construction disputes usually turn on delay, work that departs from the specification, and claims for extra costs. The key evidence is technical: working drawings, signed records and site logs.

What the law says

Law No. 2 of 2017 on Construction Services puts deliberation and consensus first. If that fails, the parties follow the steps in their contract: mediation, conciliation or arbitration.

When mediation fits

• The project is still running and the parties must keep working together
• The dispute can be measured technically, such as volumes or quality of work
• The parties want to protect confidentiality and reputation
• Litigation would likely cost more time and money than the amount in dispute

Making the result stick

Set out the mediated agreement in detail and have it confirmed by the court as a settlement deed under Supreme Court Regulation No. 1 of 2016, so it can be enforced if one side defaults.