Las Vegas’ construction boom shows no signs of slowing down. Massive projects like Allegiant Stadium, the MSG Sphere, Resorts World, and expansions on the Strip keep the construction industry booming. With so much construction activity, disputes are inevitable. When you find yourself in this situation, you can trust our construction meditation services in Las Vegas.
What is Construction Mediation?
Construction mediation is a voluntary process where a fair and unbiased third party (the mediator) handles the negotiations between two or more parties to help them reach a mutually agreeable resolution to their dispute. The mediator does not decide the outcome but guides the parties through productive discussions to find common ground.
Common Construction Disputes
Construction projects involve numerous parties, strict deadlines, complex designs, and millions of dollars at stake. With so many moving pieces, it is no surprise that disputes frequently arise. Some of the most common areas of conflict include:
- Delays and scheduling issues: Delayed schedules can arise from late deliveries, labor shortages, unexpected site conditions, change orders or any number of factors. This risks throwing off the critical path and triggering liquidated damages clauses. Finger-pointing ensues over who caused the delays and who should bear responsibility.
- Cost overruns and extra work claims: Construction projects often experience cost overruns from change orders, rework, escalating material prices and other issues. Owners and contractors invariably clash over whether work qualifies as an extra not covered under the original contract terms and pricing.
- Defective workmanship: Shoddy work that fails to meet specifications and codes is a perennial issue. Determining the responsible party and remedying the defective work through repair or replacement causes major headaches and potential safety hazards if not addressed promptly.
- Design errors or omissions: Flaws or gaps in the project’s drawings, plans and specifications can lead to work stoppages and redo’s once the issues are discovered mid-construction. This spawns disputes between the owner, architect/engineer and contractors over liability.
- Contract administration problems: Heavy documentation and paperwork requirements must be strictly followed. Perceived failures to properly administer duties like submittals, inspections, change order approvals, and payment applications can quickly escalate into disputes.
- Payment disputes: Issues like missing paperwork, disputed change order costs, project shortfalls and delayed payments can trigger the ultimate dispute of contractors filing lien claims against owners to recover money owed.
- Jobsite safety: Worksite accidents and OSHA violations over inadequate safety measures pose potential liabilities and damages if construction entities failed to follow proper protocols. Claims may also involve compliance with environmental, storm water and other regulations.
The Mediation Process
Construction mediation typically follows this process:
- Case intake: The parties agree to mediate and jointly select their mediator, often with input from their attorneys.
- Written statements: Each party submits a written statement to the mediator outlining the key facts, issues, and their position on the dispute.
- Pre-mediation calls: The mediator holds separate calls with each party and their attorneys to understand perspectives and discuss the upcoming mediation.
- The mediation session: Parties come together for a joint session where the mediator provides an overview. Then private caucuses are held where parties meet privately with the mediator to discuss the case candidly. The mediator shuttles between rooms conveying offers and counteroffers in an attempt to break the impasse.
- Settlement agreement: If a resolution is reached, a binding settlement agreement is drafted, capturing all terms.
Rather than letting these problems fester and escalate, mediation provides a forum to address issues promptly before positions become entrenched.
WE ALSO FOCUS ON THE FOLLOWING PRACTICE AREAS IN LAS VEGAS:
Blue Sky Mediation Center Helps in Las Vegas Construction Mediation
Blue Sky Mediation Center has decades of successful experience resolving all types of construction disputes in Las Vegas and throughout Nevada. Our construction mediators are professionals from the industry itself. This real-world experience allows us to quickly grasp complex construction matters.
We will work tirelessly to facilitate a mediation where all parties are truly heard and creative solutions emerge. Our structured process promotes open communication while maintaining control over confidentiality and civility. The end result is cost and time savings while preserving critical business relationships.
Do not let a construction dispute spiral out of control. Contact Blue Sky Mediation Center today to learn how our Las Vegas construction mediation services can help get your project back on track efficiently and affordably. We are always here for you.
