Insight on Business

February 2013

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insight on CONSTRUCTION By Amy Spree man SERVICES Construction gridlock Taking down walls when the project goes awry W hen the ceremonial groundbreaking is over and those golden shovels are put away, the real work to bring the blueprint to life begins. But poor communication, substandard quality and unexpected costs can make even the finest construction projects go horribly wrong for both the property owner and the contractor. "Most disputes over construction projects arise when the quality of the work or the materials did not meet expectations," says Michael Lefebvre, vice president of GraefUSA Inc. When he's not managing Graef 's Green Bay office, Lefebvre is a volunteer mediator for construction disputes. For the past 15 years, he has used his skills at the Mediation Center of Greater Green Bay, Inc. "We are 90 percent successful at resolving disputes through mediation, which is a great record on average," says Lefebvre of the mediation centers in Brown and Winnebago counties. There are several other ways to handle disputes, such as binding arbitration or court litigation, but mediation is by far the most cost effective and quickest way to resolve disputes. It's also more confidential, which makes mediation the most popular option. "In a courtroom, a win-loss outcome is as good as it's going to get," Lefebvre says. "But when two parties begin to understand why this w w w. i n s i g h t o n b u s i n e s s . c o m dispute happened and they begin to see the other side, the conflict starts to become a win-win where both parties contribute to the solution." But not all cases go that way. Lefebvre is currently consulting for a case where two sides spent an entire day at the table without a resolution, and the dispute is now headed for court. The legal side Sometimes it's not the quality or cost that sours the contract, but a lien. Property owners are often shocked to discover that under the law [continued] » F e b r u a r y 2 013 • Insight | 39

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