Mediation Rules to further the growth of construction industry

THE approval of the resolution advocating the adoption of mediation as a way of resolving construction conflicts in the Philippines is a major breakthrough that would further the growth of the construction industry, the Department of Trade and Industry 11 said.

Resolution No. 11-2005 of the Construction Industry Arbitration Commission (CIAC) was approved during the last quarter of 2005.

The resolution, passed by the Southern Philippine Construction Core Group (SPCCG) and endorsed by the DTI, is aimed at arriving into a solution before a certain conflict between the contracting parties (contractor and client) is brought to the court.

Mediation or conciliation is a way of settling disputes between parties arising from, or connected with construction contracts in the country (except labor disputes). The disputes are referred to a panel of accredited mediators/conciliators tasked to bring the said parties to an agreement.

  The CIAC, which is tasked to provide the industry with the necessary facilities for the speedy and equitable settlement of disputes, could always suggest for mediation, if both parties agree, before arbitration or court litigation is resorted to by the disputants.

With this development, DTI 11 Regional Director Engr. Merly M. Cruz said that the two contracting parties don't have to experience the long and expensive process of litigation before the court. Thus, they don't only save on money but as well as on time.

"Since disputes or conflicts between the contractor and the client could already be resolved before they become bloated, there would be no projects, roads and buildings for example, that will have to wait for a very long time before they are done. And imagine the time that these parties could save if they opt for mediation. In mediation, there are instances wherein in just one sitting the case is closed but in court, it may last for six months," she said.

The speedy resolution of conflicts, Cruz added, could be translated into growth because it avoids the delays in project implementation.

This salient feature provided by CIAC would benefit the contractors, real estate developers, construction materials suppliers, engineers, architects, and local government units (LGUs).