Resolving Construction Disputes in Colorado and the Power of Mediation

Jennifer Arnett Esq Mediation and Arbitration Rocky Mountain ADR

A seasoned mediator with nearly 25 years of experience in litigation and ADR, Jennifer specializes in construction, insurance, commercial, and outdoor recreation disputes.

 

Construction Conflicts and the Mediation Solution

Collaborative Solutions: Mediation helps parties find mutually agreeable solutions in construction disputes. 

Construction projects involve numerous moving parts, tight deadlines, and complex contracts. It's no surprise that disputes arise even with the best planning. Whether disagreements over payment, quality, scheduling, or change orders, construction disputes can quickly escalate, leading to costly litigation and damaged relationships.

In Colorado, where the construction landscape is as diverse as our terrain, finding effective and efficient ways to resolve these disputes is crucial. This is where the power of mediation comes in.

What is Mediation?

Mediation is a process where a neutral third party helps disputing parties communicate effectively, explore their options, and reach a mutually acceptable agreement. Unlike arbitration, where the arbitrator makes a decision, mediation empowers the parties to control the outcome.

The mediator facilitates the conversation, identifies both common ground and hurdles, and helps parties develop creative solutions. Mediation is confidential, voluntary, and focused on finding win-win solutions that address everyone's interests.

Benefits of Mediation for Construction Disputes in Colorado

For construction disputes in Colorado, mediation offers significant advantages:

Cost-Effective - Litigation brings expensive legal fees, expert witness costs, and court filing fees. Mediation is generally much more affordable, saving parties significant time and money by resolving disputes early.

Time-Saving - Court cases often drag on for months or even years. Mediation typically takes place over a few sessions, allowing parties to resolve disputes quickly and get back to work. This is particularly important in the fast-paced construction industry.

Preserves Relationships - While litigation often damages relationships beyond repair, mediation's focus on communication and collaboration can help maintain working relationships crucial in the construction industry, where repeat business is common.

Confidentiality - Mediation proceedings remain private, protecting business reputations and avoiding negative publicity.

Control Over Outcome - In mediation, the parties decide on the outcome rather than having a judge impose a decision. This allows them to craft solutions that meet their specific needs.

Flexibility - Mediation can be tailored to specific needs and used to resolve various construction disputes, from simple payment disagreements to complex claims involving multiple parties.

Industry Expertise - A mediator with experience in Colorado construction law provides valuable insights, helping parties understand their legal rights and obligations while navigating the complexities of Colorado's construction statutes.

Practical Business Solutions - Mediation focuses on finding practical solutions that address underlying issues, helping parties find creative ways to keep projects moving forward.

Navigating Complexity: Construction projects often involve numerous parties and intricate contracts, making disputes inevitable.

Common Construction Disputes Resolved Through Mediation

Mediation can resolve a wide range of construction disputes in Colorado, including the following:

  • Construction Defect Claims - Allegations that a building was defectively designed or constructed

  • Payment Disputes - Disagreements over payment for work completed, including unpaid invoices, change orders, and delays

  • Scheduling Disputes - Disagreements over project timelines, delays, and extensions

  • Workmanship Disputes - Claims that work wasn't performed to required standards or specifications

  • Change Order Disputes - Conflicts over the scope and cost of changes to the original contract

  • Mechanic's Liens - Disputes related to mechanic's liens filed against property

  • Warranty Disputes - Claims related to construction express and implied warranties

The Mediation Process at Rocky Mountain ADR

At Rocky Mountain ADR, we understand the complexities of construction disputes in Colorado. As a mediator with extensive experience in these types of conflicts, I provide the expertise and guidance needed to reach successful resolutions. Our mediation process typically involves:

  1. Preparation - The parties provide the mediator with key documents that provide necessary background information about the conflict, often including a mediation statement

  2. Initial Meeting - We begin with one-on-one calls between the mediator and counsel to discuss your dispute, including what your client is looking for through mediation and what the hurdles to resolution have been up to this point

  3. Mediation Sessions - Our mediator facilitates communication between parties, helping to identify key issues, explore options, and develop potential solutions.

  4. Agreement - If the parties reach an agreement, we will draft a Memorandum of Understanding for the parties to sign before the mediation session is concluded 

  5. Follow Up - If the parties do not reach an agreement during the mediation session, our mediator will follow up with the attorneys to continue to try to resolve the dispute

Don't let a construction dispute derail your project. Contact Rocky Mountain ADR today to learn more about how mediation can help you resolve your dispute quickly, cost-effectively, and with minimal disruption.

Jennifer Arnett, Esq.
Rocky Mountain ADR
Denver, CO
720-726-5852
jennifer@RockyMtnADR.com
www.RockyMtnADR.com

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