Construction Mediation

Private, neutral, and facilitative resolution of contractor, owner, and subcontractor disputes — faster and at lower cost than arbitration or litigation.

Key Takeaways

Construction Mediation

Construction mediation is a private, neutral, and facilitative process that resolves disputes among architects, engineers, contractors, owners, and subcontractors without litigation. Parties ready to schedule a session can contact Perkins Group, LLC directly to discuss availability and procedure.

Jud Perkins, founder of Perkins Group, LLC, in Salem, Connecticut, serves as a panellist in construction disputes with the American Arbitration Association and the ADR Center of Connecticut. 

Perkins Group, LLC resolves more than 85 per cent of cases, typically within weeks of engagement rather than the months or years required by AAA arbitration or state court proceedings. The firm serves parties in Connecticut, Rhode Island, Massachusetts, and the New York City area.

What Is Construction Mediation?

Construction mediation is a private, structured negotiation process in which a neutral mediator helps disputing parties reach a voluntary settlement without proceeding to arbitration or court. The mediator does not issue a binding ruling or decide who is right. Instead, the mediator facilitates discussion, identifies shared interests, and develops resolution options the parties can accept or reject on their own terms.

Each state in which Perkins Group, LLC operates — Connecticut, Rhode Island, Massachusetts, and the New York City area — maintains statutory frameworks governing arbitration agreements and ADR proceedings. 

The American Institute of Architects AIA A201-2017 standard contracts, widely used on construction projects nationally, contain mandatory ADR clauses administered through the AAA. 

Most of those clauses require mediation before arbitration can begin, making a qualified construction mediator a necessary first step in nearly every formal dispute process.

Dispute Resolution Method Binding Average Timeline Cost Level Privacy
Construction Mediation Yes
With Agreement
Weeks Low Fully private
AAA Arbitration Yes Months Moderate to high Private
Court Litigation Yes 1 to 3 years High Public record
Informal Negotiation No Variable Lowest Private

What Types of Construction Disputes Does Perkins Group, LLC Mediate?

Perkins Group, LLC mediates the full range of construction disputes that arise on commercial, institutional, and large residential projects across Connecticut, Rhode Island, Massachusetts, and the New York City area. Perkins brings more than 35 years of experience managing complex construction projects from inception through completion, providing the firm with direct knowledge of the technical, contractual, and operational issues that drive most claims. Primary dispute categories handled by Perkins Group, LLC include:

1

Payment Disputes and Nonpayment Claims

Owners and contractors frequently disagree over whether a contract milestone has been reached and payment is due. Delayed or withheld progress payments are among the most common construction claims, and early mediation prevents delay damages from compounding while the project stalls.

2

Contract Disputes and Scope Disagreements

Disputes over contract interpretation, change orders, and scope of work require a mediator who understands construction contract language and standard industry practices. Perkins holds MBAs from the University of Southern California and has personally negotiated and managed contracts on large-scale commercial and institutional projects up to $1 Billion.

3

Defective Construction and Workmanship Claims

Owners, general contractors, and subcontractors dispute responsibility for defective installations, system failures, and construction errors both during and after project completion. A mediator with field experience can assess the technical merits of each party's position and move the session toward resolution faster than a generalist neutral.

4

Delay and Disruption Claims

Schedule disputes, acceleration claims, and disruption damages require a neutral who can read a construction schedule, understand critical path analysis, and evaluate competing narratives from contractors and owners. Perkins managed on-budget, on-schedule delivery of major projects for more than three decades before transitioning to ADR.

5

Subcontractor and General Contractor Disputes

General contractors and subcontractors frequently disagree over the scope of subcontract work, payment timing, back-charges, and termination. Mediation resolves these disputes without destroying working relationships or triggering mechanic's lien enforcement proceedings.

6

Real Estate Development Disputes

Development projects generate disputes over site conditions, design changes, municipal approvals, and lender requirements. Perkins Group, LLC mediates real estate development disputes alongside standard construction claims. Parties whose development disputes involve high-value commercial contract claims may also benefit from arbitration when mediation does not produce a resolution.

Why Choose a Mediator With Construction Industry Experience?

Construction mediation succeeds at a higher rate when the mediator understands the industry from the inside. Perkins Group, LLC reports successful resolution in more than 85 percent of mediated cases, a track record built on direct project experience rather than legal theory alone.

Before founding Perkins Group, LLC, Perkins spent more than 35 years managing large-scale construction projects across the United States, including Walt Disney World, Madison Square Garden, and other large-scale commercial and institutional developments. 

Perkins managed those projects from inception through completion and turnover, working directly with owners, general contractors, architects, engineers, and subcontractors across every phase of construction.

Project management experience at that level means Perkins arrives at a construction mediation session already fluent in the language of contracts, schedules, change orders, and project finance. 

Parties do not spend time educating the mediator on basic industry concepts. The session moves directly to the substance of the dispute.

Perkins Group, LLC holds panel membership with the following organizations: American Arbitration Association (AAA), ADR Center of Connecticut, FINRA (Financial Industry Regulatory Authority), National Center for Dispute Settlement (NCDS), Rhode Island Courts, and New York City Courts.

How Does the Construction Mediation Process Work?

Construction mediation follows a structured process that moves from initial contact through a joint session, private caucuses, and, when parties reach a resolution, a written settlement agreement.

1

Engagement and Pre-Mediation Preparation

Parties contact Perkins Group, LLC, and agree to mediate. Each side submits a brief mediation statement outlining its position, key facts, and the relief sought. Perkins reviews those materials in advance so the session begins with a prepared neutral, not a mediator reading the file for the first time.

2

Joint Opening Session

All parties meet with Perkins in a joint session. Each side presents its position directly. The opening session establishes the tone and gives Perkins a first direct read of each party's priorities, bottom lines, and areas of potential movement.

3

Private Caucuses

Perkins meets separately with each party in private caucuses. In those sessions, parties speak candidly about their real interests, constraints, and settlement parameters. Information shared in caucus remains confidential unless the party authorizes the mediator to share it.

4

Negotiation and Resolution

Perkins moves between parties, testing proposals, reframing positions, and developing resolution options that each side can accept. A construction background allows Perkins to propose technically realistic solutions, not just financial splits.

5

Settlement Agreement

When parties reach an agreement, they execute a written settlement agreement before leaving. A mediated settlement becomes a binding contract once signed and is enforceable in the appropriate state court.

Construction disputes compound with every week of delay — contact Perkins Group, LLC at (860) 204-9168 to schedule a mediation session.

What Does Construction Mediation Cost?

Construction mediation through Perkins Group, LLC costs a fraction of the fees associated with AAA arbitration or state court litigation. AAA construction arbitration fees are calculated based on claim amount and include filing fees, arbitrator compensation, and case service fees. 

State court litigation adds attorney fees, expert witness costs, and case timelines that, in complex construction matters, can extend from 1 to 3 years.

Mediation fees are typically shared equally between the parties. Parties should contact Perkins Group, LLC directly at (860) 204-9168 to discuss the fee structure and scheduling for their specific dispute.

Is Construction Mediation Confidential?

Yes. Construction mediation through Perkins Group, LLC is a confidential process. Each state in which the firm operates — Connecticut, Rhode Island, Massachusetts, and the New York City area — maintains statutory confidentiality protections for mediation communications, and the ADR Centre of Connecticut applies its own confidentiality rules to panel mediations. 

Statements made during mediation sessions, positions communicated in caucus, and documents prepared specifically for mediation are not admissible in any subsequent arbitration or court proceeding unless the parties agree otherwise in writing.

Confidentiality makes mediation a safe forum for candid discussion, so parties can acknowledge weaknesses in their position and explore settlement ranges without fear that those communications will surface in arbitration or trial.

Construction Mediation vs. Construction Arbitration

Construction contracts, particularly those using AIA A201-2017 standard forms, frequently require parties to attempt mediation before proceeding to arbitration. Understanding the distinction between the two processes helps parties make informed decisions about timing and strategy.

Construction mediation is the first and best opportunity to resolve differences timely and at a reasonable cost.  In mediation, the parties are the decision makers, vs arbitration or litigation where a 3rd party imposes a decision on the parties.

Construction mediation is non-binding. The mediator facilitates discussion and helps parties reach a voluntary agreement. Either party can walk away at any point. A settlement is only binding when the parties sign a written agreement.

Construction arbitration is binding. An arbitrator hears evidence and issues an award that is enforceable in state court under each jurisdiction’s arbitration statutes. 

Parties surrender decision-making authority to the arbitrator once arbitration begins. Businesses facing high-value construction disputes that cannot be resolved through mediation may need to proceed to commercial arbitration under the AAA’s Large, Complex Commercial Disputes procedures.

Perkins Group, LLC handles both mediation and arbitration, giving parties a single experienced neutral for either stage of the dispute resolution process. 

Parties whose construction disputes involve overlapping commercial contract claims — such as vendor payment disputes or landlord-tenant claims tied to a construction project — can engage Perkins Group, LLC for both tracks.

Common Questions

Frequently Asked Questions

What types of construction disputes are best suited for mediation?

Construction mediation is most effective for payment disputes, contract interpretation disputes, change order claims, delay and disruption claims, defective construction claims, and subcontractor disputes. Any dispute in which confidentiality, speed, and the preservation of working relationships matter more than a formal adjudicated ruling is a strong candidate for mediation. Perkins Group, LLC mediates construction disputes across Connecticut, Rhode Island, Massachusetts, and the New York City area.

No state universally mandates mediation before arbitration, but AIA A201-2017 standard construction contracts, widely used across the country, may include mandatory mediation clauses administered by the American Arbitration Association. Under those contracts, a party that bypasses mediation may waive rights or procedurally delay the arbitration process. Parties should review their specific contract language before initiating any formal dispute proceeding.

Construction mediation typically concludes in a single session lasting four to eight hours, depending on the complexity of the dispute and the number of parties. Multi-party disputes may require more than one session. Scheduling through Perkins Group, LLC typically takes days to weeks, compared to months or years for arbitration or litigation.

A mediated settlement becomes legally binding when the parties execute a written settlement agreement. An oral agreement reached during mediation is not enforceable. Perkins ensures that parties document any agreement in writing before the session concludes, so the resolution is immediately enforceable as a contract under the governing state's law.

A neutral who served as a mediator in a dispute is generally disqualified from serving as an arbitrator in the same matter under the AAA Construction Industry Rules and standard professional ethics guidelines. Perkins Group, LLC serves as both a mediator and an arbitrator, but not in dual roles in the same dispute. Parties who anticipate needing both processes should discuss sequencing and neutral selection with Perkins Group, LLC at the outset.

A qualified construction mediator should be a member of a recognized panel, such as the AAA Construction Panel or the ADR Center of Connecticut, have direct construction industry experience, and demonstrate a documented track record of successful case resolution. Perkins holds MBAs from the University of Southern California, 35-plus years of large-scale project management experience, and active panel membership with the AAA and the ADR Center of Connecticut.

Yes. Perkins Group, LLC mediates construction and commercial disputes in Connecticut, Rhode Island, Massachusetts, and the New York City area. Parties with projects or contract disputes spanning multiple jurisdictions should contact Perkins Group, LLC at (860) 204-9168 to discuss whether the firm is the right neutral for their specific matter.

A Dispute Review Board is a panel appointed at the start of a construction project that monitors the project and issues non-binding recommendations when disputes arise. Mediation is a session-based process that occurs after a dispute has crystallised and the parties cannot resolve it directly. Perkins Group, LLC operates as a session mediator and arbitrator; parties seeking a Dispute Review Board appointment for an ongoing project should raise that question directly with the firm.

Ready to Resolve Your Dispute?

Resolution starts with the right neutral at the table — contact Perkins Group, LLC to discuss your construction dispute.