In construction-related litigation, financial disputes are often front and center, including claims for nonpayment, contested change orders, or delay-related cost overruns. These issues are rarely black and white, and they are often layered with contractual nuance, competing documentation, and entrenched emotions.
Effective mediation in these scenarios requires reframing the financial conversation away from blame and toward risk assessment and outcome analysis involved in the resolution of the dispute. A skilled mediator can help parties shift from positional arguments (“we’re owed $200,000”) to more constructive dialogue, such as:
- “what is the likely range of outcomes at trial?,”
- “what are the evidentiary challenges and litigation costs?,” or
- “how do timing and cash flow considerations impact leverage?”
Clients often attach strong principles to financial disputes, such as accountability or reputation. Those motivations matter, but they can cloud cost-benefit analysis. Part of a mediators job is to separate emotional investment from financial reality and help the clients understand the full value of resolution—even if the final number looks different than originally expected.
Creative structuring of a settlement can also close monetary gaps. Payment schedules tied to milestones, retainage releases, or credits against future work are frequently more palatable than a lump-sum compromise with immediate payment. In multiparty disputes, contribution percentages and sequencing of payments can play a critical role.
Mediation isn’t just about splitting the difference, where both sides often are left dissatisfied. When handled strategically, it allows parties to preserve business relationships, control risk exposure, and resolve financial issues without prolonged and costly litigation. But that only happens when the numbers are approached with precision, but with a realizations that numbers rarely tell the whole story. And when both counsel and mediator understand that in construction, dollars are rarely just dollars.