Mandatory Mediation in the Construction Industry. Will It Not Help Smaller Players?
New regulations in Poland propose mandatory mediation in construction disputes, but experts question their efficacy in aiding smaller market players.
Poland's legislative body is introducing mandatory mediation for construction disputes, in recognition of the complexity and cost of such legal battles. The aim is to expedite conflict resolution and alleviate the burden on the judiciary, which is often overwhelmed by lengthy trials that involve technical expertise and significant financial resources. This new law mandates that courts direct cases to mediation, and failure to engage in mediation may result in the imposition of legal costs, even for victorious parties.
However, there are concerns about whether this initiative will truly benefit smaller players in the construction industry. Legal expert Εukasz Chacia expresses skepticism about the effectiveness of these new regulations, suggesting that they may not significantly change the power dynamics in the market. He argues that while the number of mediated settlements might increase, the systemic issues facing smaller contractors and businesses persist under the current legal framework.
The implications of mandatory mediation extend beyond mere procedural shifts; they raise questions about access to justice and equality within the construction market. Smaller entities may still find themselves at a disadvantage despite the introduction of mediation. As the law is set to change, stakeholders will need to assess whether this approach effectively levels the playing field or merely adds another layer of complexity to an already challenging environment.