The alternative dispute resolution procedure is increasingly used to resolve the most difficult business disputes, including in the construction industry. This article briefly describes commonly used methods of ADR and their advantages compared to traditional legal proceedings. There are some companies that provide the best ADR services in Canada.
Negotiations – The best way to resolve disputes is for the parties to negotiate for themselves. However, often the parties and their lawyers make a little effort to resolve disputes than they do when negotiating the agreement. Contractors negotiate project contracts every day. So why just put your hand and call a court when there is a problem?
Negotiations are informal processes in which both parties seek to reach mutually satisfying agreements through informal and unstructured discussions. Successful negotiators focus on solving and satisfying the interests of both parties rather than deciding who is right or wrong.
The parties have full control over the results of negotiations. You can accept or reject whatever results and withdraw from the negotiation process anytime. Neutral third parties usually don't exist. Participants can use trained lawyers to solve problems to represent them in negotiations, but this is not needed.
Mediation: Mediation can be compared with negotiations in many ways. Both are informal, voluntary, and personal. Both are personal, voluntary, and informal. The focus is on problem-solving and does not determine who is right or wrong. The parties decided on the results.
Arbitration: An arbitrator is a person who determines the results of the dispute. This impartial person is usually an expert in the construction. Unless the parties agree on expert opinions, arbitrator decisions are binding and personal. Arbitrator decisions in binding arbitration can be challenged in court.