Mediation and conciliation

This guide presents mediation and conciliation as conflict resolution tools in construction projects. The guide provides an understanding of the mediation and conciliation process and offers recommendations on how parties can prepare and contribute to an effective and value-creating process.

2019

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Building and construction projects include many elements that have to work together, as well as a large number of parties who have to combine their projects into a greater whole. The complexity of the construction sector and the different activities of the many parties can result in disagreements and conflicts arising along the way. Conflicts are frequently allowed to develop, and this is both costly for the parties and damaging to their collaborative relations.

More collaboration – fewer conflicts

Mediation and conciliation are conflict resolution tools that deal with more aspects of a conflict than a traditional arbitration process. Mediation and conciliation does not only look at the legal issues, but to a greater extent also weighs up the parties’ interests in a flexible resolution. This broadens the scope for resolving the dispute and enables the parties to find a good solution, end the conflict and continue the project together.

Win-win situations for all parties

Mediation and conciliation are therefore processes that seek to clarify the substance of the conflict and reach a satisfactory common solution and strive for reconciliation or a win-win situation for both parties, rather than having a winner and a loser from the conflict. A major advantage of mediation and conciliation is that it can proceed quickly and take place during the project while everyone has the details and history of the dispute fresh in their memory. This makes it easier for the parties to find a mutually acceptable solution and preserve their collaborative relations on the project, despite their disagreements.

Summary

In this guide, we encourage the parties in the construction sector to use mediation or conciliation to resolve their conflicts. The guide supports the rules in the AB system (‘General Provisions’ for various types of contract) and the rules of procedure of the Danish Building and Construction Arbitration Board, as well as providing an understanding of the mediation and conciliation process. The guide also makes several recommendations on how the parties can prepare themselves and contribute to an effective and value-creating mediation or conciliation process.

The guide contains:

Overview of mediation and conciliation processes
Differences between mediation, conciliation and arbitration
When to choose mediation versus conciliation
Preparation strategies for parties
Role of the mediator/conciliator
Process flow and typical timelines
Cost considerations and benefits
Integration with AB system rules and Arbitration Board procedures

Facts about this guide

This guide has been produced and published by the industry initiative Værdibyg with funding from the construction sector organisations behind Værdibyg and from Boligfonden Kuben.

Who is the guide aimed at?

The guide is aimed at all parties in construction projects who may face conflicts: clients, contractors, consultants, architects, engineers, and subcontractors. It is particularly relevant for project managers, contract managers, and legal advisors who need to understand alternative dispute resolution options. The guide is also useful for those who want to include mediation or conciliation clauses in their contracts.

What you get from the guide

By using this guide, you gain understanding of how mediation and conciliation can resolve conflicts faster and more cost-effectively than traditional arbitration. You learn how to prepare for these processes, what to expect during sessions, and how to contribute constructively to finding solutions. The guide helps you preserve valuable business relationships while resolving disputes, and shows how to continue project collaboration despite disagreements.

Background

Construction conflicts often escalate unnecessarily, leading to lengthy and expensive arbitration or court proceedings that damage relationships and delay projects. Traditional dispute resolution focuses primarily on legal rights and obligations, often resulting in a winner and a loser. There is a need for more flexible approaches that consider business interests, project continuity, and relationship preservation. Mediation and conciliation offer these benefits but are underutilized due to lack of awareness and understanding of how they work.

Expert group and editorial team

The authors have been assisted by the following expert group:

Danish Association of Construction Clients:
Britt Hansen (Boligselskabet Sjælland)
Carsten Bjørlund (co2con)
Lis Holm Matthiassen (COWI)
Mikael Bredsdorff (Emcon A/S)
Per Christian Nielsen (LIFA A/S)
Torkil Schrøder-Hansen (Danish Road Directorate)

Danish Construction Association:
Henrik Ingeman Nielsen (Enemærke & Petersen)
Michael Lynge-Svendsen (Einar Kornerup A/S)
Michael Vestergaard Jacobsen (CG Jensen)
Louise Dahl Krath Jensen (Danish Construction Association)

Danske Ark:
Kurt Schou (H+ Arkitekter A/S)
Lars Vind Scheerer (Mangor & Nagel Arkitekter A/S)
Lorens Meyer (Meyers Tegnestue ApS)
Mikael Sterr Sørensen (Arkitema)

Danish Association of Consulting Engineers – FRI:
Flemming Stenaa (Rambøll)
Lene Ravnholt (NIRAS A/S)
Maria Miret (Rambøll)
Peter Halkjær (Danakon a/s)

TEKNIQ:
Allan Løvgreen (GK Danmark A/S)

Værdibyg:
Jan Eske Schmidt (TEKNIQ/Værdibyg)
Christine Bjerregaard (Værdibyg)
Rolf Simonsen (Værdibyg)
Sidse Buch (BAT/Værdibyg)

Consultant and rapporteur Christine Meden Bjerregaard (Værdibyg)

With input from:
Anne Buhl (Buhl Mediation)
Banafsheh Salehi (Danish Building and Construction Arbitration Board)
Bjarne Bæk (Copenhagen Airports)
Finn Lænkholm (Danske Mediatoradvokater)
Kurt Helles Bardeleben (Sirius Advokater)
Lene Ahlmann-Ohlsen (Danish Building and Construction Arbitration Board)
Thomas Samsø Bloch (Danish Mediation Institute)

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