The other side wants mediation: walk in ready

Mediation settles most building disputes

It is essential that people attend the mediation with sufficient knowledge of the relevant issues in dispute and the authority to make decisions about how it might settle. The mediator helps both parties work through the issues and reach an agreed solution. If you agree, the parties' lawyers prepare a short document setting out the terms for each party to sign before the mediation is concluded.

The mediator does not decide the case or impose a result. You keep control of the outcome. But preparation determines whether you achieve a realistic settlement or walk away with nothing resolved and a hearing date that will cost you more time, money and focus than you can afford.

Write a one-page summary of your claim

To prepare for a mediation make a list of the important details of the dispute and bring any documents that you want to show the other party or that you think the other party might want to see. Your summary should state what work you did, what you were owed, what was paid, what remains outstanding, and the factual basis for your position. Do not write a legal argument. Write the facts in date order.

Attach or reference the key documents: the contract or quote, invoices, payment records, correspondence about disputed items, photographs of completed work, and any variation approvals. If the other side disputes the work or the amount, your summary must address those disputes with evidence, not opinion. The mediator and the other party need to see your case clearly and quickly.

Source: Official guidance

Decide your walk-away number before you enter the room

A settlement is a compromise. You will not recover every dollar claimed, and the other side will not escape every dollar owed. Before mediation, decide the lowest amount you will accept to resolve the dispute today. Consider what you have already spent on recovery, what a hearing will cost, how long the court process will take, and whether the other party can pay a judgment if you win.

Your walk-away number is private. Do not disclose it to the mediator unless you choose to do so in a confidential session. But know it before any offers are made. If the other side offers less, you can reject it. If they offer more, you can accept or negotiate further. Without a clear bottom line, you risk accepting too little under pressure or rejecting a reasonable offer because you have not thought through the alternatives.

Bring the person who can make the final decision

If attending on behalf of an organisation the Court requires the attendee be an authorised officer who is able to make a decision about how the dispute might be settled and to enter into an agreement on behalf of the organisation. If you send someone without authority, the mediation will stall every time an offer is made while they call you for instructions. That frustrates the mediator, annoys the other side, and wastes the opportunity to reach settlement.

If you are the business owner, attend yourself. If you must send a representative, give them a written authority stating the maximum amount they can agree to pay or the minimum they can accept, and confirm they can sign a binding settlement on your behalf. Do not leave the person in the room guessing what you will approve.

Bring your key documents in date order and get support

Bring your notes about what you want to say and your options and paper and a pen to make notes during the mediation. Arrange the documents chronologically so you can find them quickly when the mediator or the other party asks a question. Include the contract, all invoices, proof of payment, correspondence, photographs, site records, variation requests, and any notices issued under the contract. If a document is missing, the other side may dispute your version of events.

If the dispute is complex or the amount is significant, consider bringing a lawyer or adviser who understands construction contracts. Mediation works best when all parties are prepared and have received relevant advice. CRP coordinates independent qualified professionals who can review your position, prepare your documents, and attend mediation with you to help you negotiate a realistic settlement and avoid costly mistakes. Contact CRP today to discuss dispute resolution support tailored to construction businesses. Bring your contract, invoices, correspondence, and a clear explanation of what you want to achieve.