Comparison of Mediation Systems in the Construction Industry of Two European Countries

Abstract

The construction process is multistage and usually involves different stakeholders. The stakeholders of this process pursue different goals and implement them by different means, which would predetermine various disputable situations. In case of resolving disputes in the court, it is necessary to prepare and provide a large number of documents and evidence. Those need to be prepared separately for each defendant depending on the type of dispute. Resolving construction disputes by such judicial way takes a substantial period of time and incurs substantial expenses. Large amounts of company resources and time are invested to dispute-resolving processes that can be used in a business. Among the various dispute resolution methods, mediation has been increasingly gaining recognition and acceptance in construction. Unfortunately, in new European countries like Lithuania, the implementation of mediation is still in the initial stage. This study encompasses the nature of construction disputes, key features of mediation, analysis of main differences among court and mediation processes, and pros and cons of mediation with special reference to the construction industry in Germany and Lithuania. Based on these results, recommendations to increase mediation in Countries that are new to the EU countries are elaborated. Finally, it is concluded that more education of construction professionals about mediation, more training of competent construction mediation, and incorporation of mediation clauses in construction contracts are strongly advocated.