Mediation is a consensual, confidential and relatively informal negotiation process in which parties to a dispute use the services of a skilled and independent mediator to assist them in defining the issues at hand, to develop and explore settlement options and to negotiate a mutually acceptable settlement with which both parties are happy with.
The objective of mediation is to enable and empower the parties to negotiate and resolve the dispute promptly, cost effectively and confidentially rather than to have a decision imposed upon them by a judge, arbitrator or adjudicator. Mediation enables the parties to negotiate flexible and creative solutions which need not conform to strict legal rights or general community standards.
When concluding your building contract, it will be a good idea to make provision for a mediation clause. This will ensure that both parties have the reassurance that there are remedial steps in place when a dispute arises.