Mediation Pilot Construction

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Pilot on dispute mediation in construction

Mediating payment disputes in construction

Mediation is one of the main alternative dispute resolution (ADR) techniques for resolving conflicts, other than going to court. Encouraged by the Mediation Directive, mediation offers a swift, cost-effective means of resolving disputes, while preserving commercial relationships. In a mediation process, an independent and impartial third party, the mediator, works with both parties to reach a mutually agreeable solution.

One type of dispute that can successfully be resolved through mediation is a (late) payment dispute. In fact, the European Commission envisions that payment disputes will be resolved effectively through the proposal to revise the Late Payment Directive. It will promote prompt payment cultures and encourage widespread use of mediation and alternative dispute resolution mechanisms across the European Union.

To facilitate the resolution of business-to-business payment disputes, the European Innovation Council and SMEs Executive Agency (EISMEA) is testing the benefits of ADR techniques such as mediation. For this purpose, the recently launched pilot project on using mediation to resolve payment disputes in the construction sector (largely consisting of SMEs) is currently exploring the impact of targeted actions in Belgium.

The objective of the pilot project on mediation in late payment disputes

The pilot project aims to address late payment issues in the construction sector by facilitating access to mediation. It will do so by managing barriers such as the absence of contractual mediation clauses and lack of awareness among SMEs, but also by testing the results of these policy interventions.

Activities

The project will foster the use of mediation by

preparing easy and ready-to-use tools and templates for companies who want to benefit from mediation (standardised contractual clauses, mediation protocol)
establishing a network of around thirty specialist mediators on payment disputes in the construction sector in Belgium
facilitating contact between the specialist mediators and construction companies in need of mediation
raising awareness about the potential of mediation amongst Belgian companies active in the construction sector via documentation and events

Scope

The pilot project will be rolled out in Belgium, targeting SME-sized construction companies with payment disputes. By focusing on disputes in the construction sector, the project addresses its unique challenges and dynamics with a tailored approach to effectively reach resolutions through mediation. The network of specialist mediators understands construction-specific challenges, increasing the likelihood that companies will trust the mediation process.

We invite businesses active in the construction sector in Belgium to submit their dispute for mediation under the pilot project. The procedures set up ensure strict confidentiality for the parties. The scope of cases admitted encompasses disputes within the construction sector where one party expresses interest in using mediation to resolve the issue. There is absolute freedom for the other party to accept or reject this route. These disputes specifically pertain to payments between companies involved in construction works within Belgium, to which Belgian law applies.

Project team and partnerships

EISMEA commissioned the pilot project, contracting it to Milieu Consulting SRL. EISMEA and the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs fully support the contractor under Service Contract EISMEA/2022/OP/0025.

The project team further comprises Belgian mediation experts Erik van Wellen and Thomas Braun, mediators in the construction sector, respectively, a civil engineer and a lawyer by profession. Their expertise, training, and extensive networks strengthen the pilot project.

The pilot project receives support from the Federal Mediation Commission, the coordination centre and the official policy-executing and policy-influencing body for mediation in Belgium.

Further, we plan to set up some strategic partnerships within Belgium to raise awareness about and promote this pilot project.

Next steps

The specialisation training sessions for Belgian accredited mediators will be held in June 2024 in Brussels, in French and (Flemish) Dutch. Two mediation experts, experienced in successfully helping companies in the construction sector resolve disputes, will provide the training. The Belgian Federal Mediation Commission and its Construction Committee recognise the training, which is also eligible for further education credits.

Later this year, we will open the registration for companies who wish to benefit from the talents of our specialised mediators. The mediation sessions can take place in French or Dutch, at the companies’ premises, or in dedicated facilities in Brussels.