Extrajudicial mediation is an area which is non-regulated, and without regulation extrajudicial mediation will never become the natural choice for business partners in the construction industry when a conflict occurs. The peculiarity concerning extrajudicial mediation is that it is an alternative dispute resolution method, which can ensure a quick resolution of the conflict. The mediation is done by a private body, and the parties must themselves reach the solution that they find common good, and it is an alternative dispute resolution method that allows the parties to maintain their cooperative relationship. The major concern is that it is not possible to enforce extrajudicial mediation settlements. The construction industry is an industry, which is characterized by strong price competition, many players and there are many conflicts between corporate parties. It is also an industry where there is money at stake in each project, and it is an industry, which has great importance to the economy. The traditional method of dispute resolution in the construction industry is arbitration, but it is an alternative dispute method which is much more expensive than extrajudicial mediation. Since the industry is characterized by strong price competition, then the rational parties should choose the most efficient method of dispute resolution, which is extrajudicial mediation, but this is often not the case, why game theory will illuminate what has to be done in order for the parties to choose the most efficient dispute resolution method, extrajudicial mediation.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||113|