Construction companies can now settle disputes faster and at a lower cost through mediation, instead of litigation.
The Master Builders Association of Malaysia (MBAM) has set up a mediation services centre at its premises to enable its members to discuss the issues involved with a mediator to reach a mutually agreed settlement.
“The mediation service is a non-adversarial option used to resolve disputes and disagreements with the assistance of a neutral third party,” explained MBAM president Foo Chek Lee. “This will be an alternative channel for members facing problems with the administration of their contracts.”
For industry players, this may be a better option than taking the matter to court, he added, as litigation is costly, with a lot of uncertainty.
The centre was launched on 10 July 2019, in conjunction with the MBAM Conference on Current Contract Administration Practices. Eleven persons have been appointed to sit on the panel of mediators.
Oliver H. C. Wee, vice-president and chairman of the MBAM contracts and practices panel, said the mediation service would encourage disputing parties to communicate and negotiate in a confidential setting and to resolve issues and disputes “in a more friendly manner”.
The administrative cost for mediation has been fixed at RM500 per case, to be shared equally between the disputing parties. The mediator’s fee is capped at RM4,000, and both parties have to pay a RM2,000 deposit each before mediation efforts begin. — Construction+ Online