Insight on Business

February 2013

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A closer look Top 10 alternative dispute resolution myths 1. Mediators will decide the case. Mediators only facilitate an agreement between the parties. Settlement is voluntary. mediators in any construction specialty (structural, geotechnical, civil, mechanical, electrical, general contractor, specialty subcontractor, architect, etc.). 2. Mediation agreements are not enforceable. Agreements can be filed with the courts, which have the power to enforce them with the same vigor as a court ruling. 5. Alternative dispute resolution is only arbitration. Mediation, on-site neutrals, dispute review boards, mini trials and many other alternative dispute resolution methods are available just for construction. 3. Arbitration is structured for the attorneys. Construction industry rules are structured for the parties. Representation by an attorney is not required. Parties often present their own cases. 4. Arbitrators and mediators are attorneys and judges. Nearly half of the AAA Construction panels are engineers, architects, contractors and subcontractors. You can select arbitrators or property owner agreement are spelled out in standard American General Contractors (AGC) specs, using the Standard General Conditions language which stipulates that should a dispute arise, mediation is always the first venue. Because attorney fees quickly 6. The arbitration process takes too long. The process from filing a claim to award can take as little as 60 days. 7. The arbitration fees are too high. Fees can vary depending upon the service provider. A well-structured mediation settlement or quick decision in arbitration is a very efficient way to get a dispute settled. can become the driving factor in a dispute, Kowalkowski urges his clients to cooperate before there's no turning back. "Even when both parties think they're right and the other person is wrong, if the project is not working out well, everyone needs to sit down 8. Arbitration takes as long and costs as much as a trial. The speed and cost are a function of the wishes of the parties and are dependent on the amount of discovery and scheduling, a decision made by the parties. As long as you take control, the cost and speed are strictly a function of your decisions. 9. You as a party have no right of appeal. If the right of appeal is an important or legally required component, it can be structured within the arbitration process either by contract or post dispute agreement. 10. Mediation can't help. Mediation is highly effective, with a settlement rate of over 85 percent. SOURCE: American Council of Engineering Companies together as soon as possible to work it out," Kowalkowski says. "If you take the emotion out of the equation, it's a simple business proposition between a property owner who wants it on time and on budget, and a builder who wants to get paid for his work." PLEXUS CORPORATION NEENAH OPERATIONS FACILITY Neenah, Wisconsin relationships At MIRON CONSTRUCTION, we're about more than just building buildings. We're about building lasting RELATIONSHIPS too. From clients, architects, subcontractors and suppliers to community organizations and the residents they serve, we strongly value all of the partnerships we've created and look forward to continuing to strengthen them. Join the conversation at miron-constructionnews.com An equal opportunity, affirmative action employer. w w w. i n s i g h t o n b u s i n e s s . c o m miron-construction.com F e b r u a r y 2 013 • Insight | 41

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