Alternative dispute resolution is the use of methods to resolve a dispute without resorting to legal action. They usually involve the use of a neutral third party and can help find a creative solution to resolve an issue. But what are the benefits of such a service for builders and installers? Read on, as we take a closer look in this post.
Costs significantly less than going to court
Court battles, even those which last a short period of time, are exceedingly expensive. Resolving any conflicts via this method can cause serious financial loss, especially if the issue is complex. To give you an idea of how much you can save, ADR-based mediation of a dispute at Chevron cost $25,000, whereas going to court would have cost as much as $2.5 million over a period of three to five years!
If litigation occurs, you may have to take time off work to attend court, resulting in a backlog of work. This may lead to upset customers and worries over whether or not you’ll complete jobs in time. Plus, litigation of any kind is a stressful experience, therefore it’s wise to avoid it, if possible.
Tell your story
During conciliation, a common method of alternative dispute resolution, a neutral mediator will ask questions to both parties to try and find out as much information as possible. This presents you with an opportunity to tell your exact interpretation of events.
Takes into account the needs of both parties
Court is a far more rigid institution, and tends to resolve disputes in line with legal legislation. However, ADR is more flexible and responsive to the individual needs of those involved. Therefore, the outcome is more likely to be reflective of the dispute.
More likely to preserve existing relationships
As the needs of both parties are taken into account, the outcome is more likely to suit the needs of everyone involved. This can help preserve existing customer relationships somewhat, which can be useful if the relationship is expected to continue. For example, they’ve scheduled additional work from you, before a dispute arose.
Such processes occur behind the privacy of closed doors, not within the public sphere of a courtroom. Therefore, disputes can be dealt with in a confidential manner.
Generally, court hearings take a long time to be arranged, leading to lengthy waits for any issues to be resolved. Conversely, an informal mediation can take place far quicker, increasing the likelihood of a quick resolution.
Becoming an esteemed member of the CPA grants you access to an alternative dispute resolution service, meaning you can enjoy all the aforementioned benefits. For more information, call our helpline on 01462 850064 or send us a message via our online contact form.