Construction projects often involve multiple stakeholders—owners, general contractors, subcontractors, suppliers, insurers, and sometimes lenders. When disputes arise, this complexity can make mediation more challenging but can also make a resolution that much more important. Navigating a mediation with multiple parties requires thoughtful preparation and strategic management.
Why multi-party mediation is different
Unlike a two-party dispute, multi-party mediation involves coordinating diverse interests, competing claims, and varying levels of influence and leverage. Each party may have its own goals, financial constraints, and relationships, which can complicate negotiations. However, mediation offers a unique chance to bring all parties together to align on solutions that address the dispute holistically—something that is often impossible in separate arbitration or litigation proceedings, where the parties have much less control over the outcome.
Strategies for success
Clear communication before mediation is critical. Identify who must participate and confirm that decision-makers will be present or available. Many mediations fail because a key stakeholder has not sufficiently been “brought to the table.”
When multi-party mediations occur, parties have to adjust their positions and align with others much more frequently than in a simple two-party mediation. Mediators may have different groups of parties in private caucuses throughout the day or meet with just the lawyers. Further, some parties may not see the mediator for hours, and some parties may leave the mediation while others remain. Thus, the management of the mediator during the day becomes all the more critical when there are several parties whose interest may shift during the day in response to how the negotiation develops.
Maintaining focus on shared goals, like completing the project or preserving ongoing business relationships, helps keep parties aligned despite competing interests. Counsel should encourage clients to consider creative settlements, offers, and non-financial solutions during the day in order to get all of the parties to agree to a global resolution.
The takeaway
Multi-party mediation can be complex, but with proper preparation and skilled facilitation, it provides a powerful forum to resolve tangled construction disputes efficiently. Bringing all stakeholders together in one mediation process can transform conflict into collaboration and pave the way for lasting solutions.
Michael Bosse is a seasoned construction attorney and skilled mediator, helping owners, contractors, and subcontractors resolve disputes efficiently and fairly outside of court. With nearly three decades of experience spanning contract negotiation, complex litigation, eminent domain, and more, Mike brings a practical, client-focused approach to facilitating constructive dialogue and achieving mutually beneficial outcomes. Bernstein Shur’s Construction Law group combines deep industry expertise with a hybrid transactional and litigation practice, offering clients comprehensive support through every stage of their projects—from contract drafting to dispute resolution and beyond.