The MMAP is suitable for any type of construction dispute. The procedure paves the way from the selection of the mediator to the conclusion of the mediation. The parties know what to expect from the mediator. In the case of complex disputes or if the parties are more demanding, they or the mediator can naturally extend or modify the process to meet the specific needs of the parties or the dispute. Since the publication of this article in May, the OIC has published the first edition of its model mediation agreement and procedure. CIC`s objectives remain: “to provide an innovative approach to cost-effective dispute resolution that includes unique characteristics in terms of people and processes that empower the mediator and the parties. The process is supported by the appointment of a mediator approved by CIC`s Mediator Committee, the mediator`s role as guardian and head of the mediation process, and a cap on mediation fees. In addition to the standard legal provisions relating to the assumption of its own costs by each party, the confidentiality of the mediation, the exclusion of the mediator`s liability, etc., there is a curious provision in the standard mediation procedure which states that “the expiry of a contractual or legal limitation period from the date of signature of the request for mediation by the last person who signed the mediation, is suspended until the end of the mediation. , or no later than six months after the date on which the last person signed the request for mediation, unless the parties have agreed otherwise in writing`. A respondent should be aware that an agreement to use CIC`s model agreement and mediation procedure (if adopted in its current form) effectively means the conclusion of a standstill agreement, possibly for up to six months! It will be interesting to see if all proposals survive the consultation phase. At present, the ICCMMP would expand the range of dispute resolution procedures available to parties, providing both fixed-price certainty for smaller disputes and quality control by providing access to experienced mediators.
The model mediation procedure also provides that, as part of a mediation agreement, the parties may agree in advance that the mediator will propose a non-binding conclusion within seven days of the conclusion of the mediation day in the absence of an agreement. As part of the model mediation process, cic`s panel of mediators commit to the European Code of Conduct for Mediators. The Code of Conduct sets out a set of principles relating to competence, independence and impartiality, the procedure to be followed in mediation (including procedural fairness) and confidentiality. In accordance with the terms of the agreement, the parties are required to prepare a summary of the file (similar to a mediation statement) at least 7 days before the mediation. The parties are also required to determine, at the beginning of the mediation, their best alternative to a negotiated agreement (i.e., the most advantageous course of action a party can take if the mediation fails). This makes it possible to establish the starting positions of each party. Mediation itself then proceeds like any mediation, but it is necessary that the participants have full authority to settle the dispute and sign a settlement agreement. CIC`s MMAP attaches great importance to the “lead negotiator” for each party (as a person with full authority) and requires the mediator to have direct contact with the lead negotiator before and during mediation. CIC`s MMAP combines both guidelines and procedures and contains functions that empower the mediator and facilitate good mediation. CIC`s mediation process is confidential, private and structured. CIC has published the first edition of cic`s Model Mediation Agreement and Procedure (CIC MMAP). CIC`s MMAP is a model agreement and procedure to assist the parties in resolving a construction and engineering dispute through mediation.
CIC`s Model Mediation Procedure identifies mediation as a process in which “the parties agree to cooperate and to obtain the mediator`s assistance in resolving their dispute amicably. Mediation is not adversarial and works best when the parties are willing to work together to solve a common problem. The parties shall exchange lists of participants, including participants` professional titles, seven days before mediation. As part of the standard mediation process, each party, in addition to their legal or other representation, involves a “business manager” in the mediation who acts as a negotiator with full authority to resolve the dispute and sign the settlement agreement. Amendments may be required if legal representatives must participate in mediation with delegated authority to negotiate a settlement and there is no manager who must also be present. Few people doubt the benefits of mediation as an alternative to litigation. In fact, the objectives underlying the CIC Model Mediation Procedure (MCMMP) are broadly consistent with what most people mean by mediation, namely: a private, confidential, non-adversarial and non-biased cooperative process in which the mediator helps the parties better understand the other party`s position in order to promote the agreement. The settlement agreement is not binding unless it is in writing and signed and the parties bear their own legal and other costs. The standard procedure provides for a mediation service for all construction and engineering disputes involving amounts below £100,000 for a fixed amount of £6,000 (excluding costs). This could be a useful offer in the market to resolve lower-value claims.
Construction and engineering disputes can not only damage business relationships, but also result in financial costs, which can be high, and emotional costs, which can be debilitating. The OIC believes that mediation plays an important role in the resolution of construction and engineering disputes. CIC`s MMAP offers an innovative approach to cost-effective dispute resolution that includes unique characteristics in terms of people and processes that empower the mediator and the parties. The procedure is a combination of contractual conditions and limitation periods. In other words, the key terms regarding confidentiality, appointment of mediators, and compensation (among other conditions) are fixed, but the agreement also describes the mediation process. The advantage of this approach is that the parties know what to expect during the mediation process. A party starting out in mediation will immediately understand how CIC`s process should work and what to expect along the way. For example, the MMAP assumes that each party will have a qualified representation and a negotiator and that the mediator will challenge the parties in private meetings, and therefore the parties should expect to be questioned about their positions. This approach dictates what should happen during mediation and prepares those new to mediation for the inevitable.
For disputes worth less than £100,000 (plus VAT), the mediator`s fee is set at £6,000. Like other forms of mediation, the MMAP provides for four phases. Features include options for parties to include a CIC mediation recommendation clause in their contract; and for the CIC to assist the parties in selecting or appointing a mediator (from cic`s new panel) for a fixed appointment fee of more than £300 VAT. “. Mediation saves parties to the dispute money and time, creates practical solutions, and preserves and restores relationships” – Niall Lawless Chair CIC Adjudicator Nominator Body The Construction Industry Council (CIC) is expected to release its model mediation agreement and procedures in late spring 2019 after consultation in 2018. This new process will be based on a construction industry mediation panel made up of experienced mediators. .