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Home Construction Disputes
Senate Bill 168 (effective August 28, 2005) provides for dispute resolution of disputes involving new home construction or substantial remodeling of single family and owner-occupied multi-family residences. Homeowners and contractors may engage in mediation prior to initiating litigation, and may be required to do so by contract.
Click "Mediators in Missouri" tab at left to see a list of construction mediators.
The Association of Missouri Mediators offers the following information as a public service to assist those seeking qualified, independent and neutral mediators. A request in writing for mediation requires a response within 14 days identifying the proposed mediator and proposed mediation date. Mediation should take place within 45 days of the request for mediation. A mutually agreed resolution through mediation operates to release the claims described in the written notice of defect, but is not effective until the agreed upon remedy has been accomplished.
FREQUENTLY ASKED QUESTIONS
What will mediation do for us?
Mediation helps people stay focused on problem-solving while exploring positive, construction options for resolving their dispute. Participants report a high level of satisfaction with the process. Many find mediation reduces the stress, time, and costs normally associated with litigation of disputes. Also, there is a very high level of compliance among people who commit to a resolution in mediation.
When are home construction disputes mediated?
Mediation may be required in the construction contract. Missouri law sets our the rpocess for resolving a "Notice of Defect" in residential construction. Either the claimant (homeowner) or contractor may offer to resolve the dispute through mediation at any time. (See Missouri Revised Statute 431.312). For example, when an offer to settle is rejected, the rejecting party may response with a request for mediation. By statute, the mediator and time and place of mediation must be selected within 45 days after service of a written request for mediation.
How can mediation help when we are deadlocked on key issues?
People can easily get locked into opposite positions without exploring the full range of satisfactory options. Mediators are trained to help people evaluate their other options and seek a resolution acceptable to all. Deadlocks may also occure because of miscommunication between people. Mediators are trained to help people communicate clarely about their concerns and interests.
How do I find a mediator?
Mediators with training in home construction disputes are listed on this website. You can also find mediators on the internet, in your local phone directory and on the list of court qualified mediators maintained by The Missouri Bar. Some cities also have community mediation centers. The mediator should be qualified and independent.
How does mediation get set up?
The claimant (homeowner) or contractor may suggest the name of a mediator in the notice sent to the other party. The claimant and contractor should both agree upon a mediator. THe parties may seek appointment of a mediator by a court if they cannot agree.
Who participates in mediation?
Any person or entity reasonably necessary to resolve the claim may participate in mediation if both parties agree. No one other than the claimant or contract can be required to participate.
What should I bring to the mediation session?
The mediator will rely on you to be informed about the dispute. You should have access to all documents you may wish to refer to in discussing the claim. It's a good idea to discuss with the mediator how documents will be used and under what circumstances they will be released to others.
Should I hire a lawyer?
You should be informed about your legal rights and liabilities before you go to mediation. It is up to you whether a lawyer comes to mediation with you. You may wish to hire a lawyer to formalize any agreement you reach in mediation.
Who pays for mediation?
By statute, the claimant and contractor equally share the mediator's fee unless they agree otherwise.
What does mediation cost?
Mediation typically costs from $50 to $150 per hour or more depending on the qualifications and experience of the mediator. Some community mediation programs offer mediation at reduced rates. Mediators usually required a deposit on the fee in advance. Ethically, mediators should refuse to render services based on the amount in controversy.
What happens when we resolve our dispute in mediation?
The mediator may be willing to draw up a summary of the agreement at the request of the parties. This is non-binding until such time as the parties make their agreement formally binding. An agreement will not release any claim in the "Notice of Defect" until the agreed upon remedy has been accomplished. An agreement only releases claims described in the Notice of Defect.
SAMPLE FORMS
(under construction)
Notice for Mediation
Response to Notice for Mediation
Agreement to Mediate
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