The Use of Mediation in Construction Disputes - Summary Report
King's College London and the Technology and Construction Court (TCC) undertook an evidence basis survey to gather objective data about the use, effectiveness and cost savings associated with mediations that settled construction industry litigation. From June 2006 until May 2008 parties to litigation in the London, Birmingham and Bristol TCC received a survey form.
The aim was to find out in what circumstances mediation offers an effective and efficient alternative to litigation, as well as to determine whether and at what stage the court could or should encourage mediation.
The results showed that 35% of those cases that settled after commencing litigation in the TCC used mediation. The vast majority were undertaken as a result of the parties' own initiative, with the parties also agreeing the identity of their mediator. Successful mediations were undertaken throughout the litigation timetable, saving costs of up to £300,000 with 9% of the cases saving more than that amount. The mediation of construction disputes in the TCC is clearly now an established, mature and invaluable dispute resolution tool.