Mediation and ADR for Building Disputes
The ways to settle a disagreement with a builder without going to court, how mediation works in practice, and how to tell whether it suits your dispute.
The short version
Most building disputes can be settled without a courtroom. Mediation and other forms of ADR give both sides a structured way to agree.
Alternative dispute resolution, usually shortened to ADR, covers the ways of settling a disagreement outside court. For a homeowner in dispute with a builder, the most common is mediation: an independent person helps you and the contractor talk it through and reach an agreement you can both accept. Other forms include an independent expert's decision, a trade body's complaints process and, less often, arbitration.
ADR is usually quicker, cheaper and less adversarial than a court claim. It tends to work best when both sides still want the matter resolved and the disagreement is about how much, how or when, rather than whether anything went wrong at all. It does rely on the contractor taking part, and for most traders taking part is voluntary.
This guide explains the main options, how a mediation actually runs, how to prepare, and where ADR sits between a complaint and a court claim. It is part of our guide to when building work goes wrong. This is general information, not legal advice.
First things first
ADR works best after a proper complaint
ADR is a way of settling a dispute that direct conversation has not resolved. Before you get there, the contractor should have had a clear, written account of the problem and a fair chance to put it right. Many disagreements end at that stage, and anyone you approach about mediation will ask whether it has happened. Our guide to raising a complaint with a builder covers how to do it well.
It helps to be clear about what the dispute actually is. 'The roof is not right' is a starting point. 'Water is coming in above the back bedroom, the contractor says it is condensation, and I want it inspected and put right' is something a mediator can work with. The more specific the disagreement, the easier it is to settle. If it is really about money, such as an extra charge you did not expect, our guide to variations and extra costs may help you frame it.
Keep your records together from the start: the quote, any written changes, messages, dated photographs and notes of calls. Every form of ADR relies on them. Our guide to keeping evidence and records explains what to keep.
The options
Six ways to settle a building dispute out of court
They differ mainly in who decides the outcome: you and the contractor together, or someone else.
Mediation
A neutral mediator helps both sides talk and reach their own agreement. The mediator does not decide who is right, and nothing is binding unless you both sign a settlement.
Trade body or scheme processes
If the contractor belongs to a trade association or a scheme such as TrustMark, that body may run a complaints or dispute process for its members' customers. Trade accreditation schemes explained covers what each type of body does.
An independent expert's report
A surveyor or other qualified professional inspects the work and reports on whether it is defective and what it would take to put right. Not a decision in itself, but often what unlocks one.
Expert determination
Both sides agree in advance to accept an independent expert's view on a technical question. Useful when the dispute turns on one point, such as whether the work meets a particular standard.
Adjudication
A fast decision process used widely in commercial construction. The statutory right to it generally does not apply to contracts with a homeowner for work on their own home, unless the contract itself provides for it.
Arbitration
An arbitrator hears both sides and makes a binding decision, usually in place of going to court. It is more formal and can be costly, so take advice before agreeing to it, particularly if a contract clause requires it.
How it runs
What happens in a mediation
Details vary between mediators, but most follow a similar pattern.
Both sides agree to mediate
One of you suggests it, ideally in writing, and the other agrees. Mediation cannot go ahead without both of you.
You choose a mediator
Ideally someone with experience of building or consumer disputes. Agree who pays the fee, and how it is shared, before you book.
You each set out your position
Usually a short written summary with the key documents and photographs, sent to the mediator before the session.
The session
It may be in person, by video or by phone. The mediator may speak to each side separately as well as together. What is said is normally kept confidential.
Agreement, or not
If you reach an agreement, it is written down and signed, and a signed settlement is usually binding as a contract. If you don't agree, you remain free to take other steps.
Is it right for you?
When mediation tends to work, and when it struggles
Tends to work
- Both sides still want the job resolved
- The dispute is about cost, scope or timing
- There is a working relationship worth keeping
- A technical question can be settled by a report
- You want the matter kept private
- You would rather avoid the time and cost of court
Tends to struggle
- The contractor has stopped responding entirely
- The business has stopped trading
- One side will not accept any fault at all
- One side is not engaging in good faith
- You need an urgent decision
- The amount is too small to justify any fee
Preparing well
How to get the most from a mediation
Know what you want. Be specific: the item put right by a date, a sum of money in place of the repair, or a combination. Decide in advance the least you would accept, and why.
Know your evidence. Bring the quote, any agreed changes, the correspondence in date order, photographs and any independent report. A mediator will not rule on it, but it shapes what each side thinks is realistic.
Think about the alternative. Ask yourself honestly what happens if mediation fails. A court claim takes time and effort, the outcome is uncertain, and a judgment in your favour is not the same as being paid. Weighing that helps you judge an offer on the day.
Listen to the contractor's view. Mediation often brings out a point you had not known about: a delayed delivery, a different reading of what the quote included, a problem with access. You don't have to agree with it, but understanding it makes a settlement more likely.
Get the agreement in writing, precisely. Who will do what, by when, and what happens to any money. If part of the dispute is a sum you have held back, the settlement should say exactly when it is paid. Our guide on when to withhold payment covers how to handle that fairly. Vague settlements create new disputes.
ADR is voluntary for most traders unless they belong to a scheme that requires it. Courts in England and Wales expect parties to have considered settling a dispute, including through ADR, and can take an unreasonable refusal into account. The statutory adjudication scheme under the Housing Grants, Construction and Regeneration Act 1996 generally does not apply to contracts with a homeowner for work on the home they live in. If your contract contains an arbitration clause, take advice before relying on it or agreeing to it. Citizens Advice and GOV.UK publish guidance. This is general information, not legal advice.
Costs and providers
Arranging a mediator
Mediation is provided by private mediators and mediation firms. Fees vary with the size and complexity of the dispute and how long the session runs, and some mediators offer fixed fees for smaller disputes. Ask for the fee in writing before you commit, and agree with the contractor how it will be shared.
The Civil Mediation Council keeps a register of mediators who meet its standards, which is a sensible place to start. If the contractor belongs to a trade body or scheme, check whether it offers or recommends a service of its own. Our answer on what TrustMark is explains how one such scheme works.
If a small claim has already been started in England and Wales, the court service offers a free small claims mediation service, and for many claims a mediation appointment is now part of the process. Our guide to small claims for building work explains where it fits.
Citizens Advice can help you think through whether ADR suits your situation, and a solicitor can advise on a larger or more complex dispute.
Keeping perspective
The aim is a fixed job, not a won argument
In a building dispute, what you usually want is the work put right, or a fair sum to have someone else do it. Mediation is often the shortest route there, because it lets both sides reach a practical outcome without either having to concede every point. It is worth suggesting early, before positions harden, and worth approaching with an open mind even if you feel strongly that you are in the right.
If you use Mortaro
Escalation comes first, and it often settles things
Mortaro coordinates domestic building projects. Your quotation names the appointed main contractor, an independent company from our network who carries out the work and provides the workmanship warranty. Your construction contract is with them, so any formal dispute about the work, including mediation, is between you and your contractor.
Before it gets that far, tell us. We raise the problem with your contractor on your behalf, push for a visit and a resolution, and keep following up so you are not left chasing someone who has gone quiet. Contractors who fail to put their work right are removed from our network. We are not a mediator and we don't indemnify the work, but getting a contractor to engage is exactly what we do. Putting things right explains our process, and who you're dealing with sets out the three parties.
Straight answers
Questions about mediation and ADR
Is mediation legally binding?
The discussion itself is not. If you reach an agreement and both sign a written settlement, that settlement is usually binding as a contract, so take advice before signing anything significant. This is general information, not legal advice.
Does a builder have to agree to mediation?
Generally not. For most traders ADR is voluntary unless they belong to a scheme that requires it. Courts do expect parties to have considered it, which can encourage a reluctant contractor to take part.
Is there an ombudsman for building work?
There is no general ombudsman for building work on an existing home. Depending on the contractor, a trade body or scheme may have its own complaints process, and Citizens Advice can point you to the right route.
Do I need a solicitor for mediation?
Not usually for a smaller domestic dispute, and many people attend on their own. For a larger or more complex dispute, advice before the session, and before signing any settlement, is worthwhile.
What if mediation doesn't work?
You remain free to take other steps, including a court claim, and what was said in the mediation is normally kept confidential. Our guide to when building work goes wrong sets out the full route.
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