Wednesday, February 15, 2006
Mediation rules to further growth of construction sector
THE approval of the resolution advocating the adoption of mediation as a way of resolving construction conflicts in the Philippines is a major breakthrough that would further the growth of the construction industry, the Department of Trade and Industry (DTI) in Southern Mindanao said.
Resolution 11-2005 of the Construction Industry Arbitration Commission (CIAC) was approved during the last quarter of 2005.
The resolution, passed by the Southern Philippine Construction Core Group and endorsed by the DTI, is aimed at arriving into a solution before a certain conflict between the contracting parties is brought to the court.
Mediation or conciliation is a way of settling disputes between parties arising from or connected with construction contracts in the country (except labor disputes). The disputes are referred to a panel of accredited mediators and conciliators tasked to bring the said parties to an agreement.
The CIAC, which is tasked to provide the industry with the necessary facilities for the speedy and equitable settlement of disputes, could always suggest for mediation, if both parties agree, before the disputants resort to arbitration or court litigation.
With this development, DTI Director Merly M. Cruz said the contracting parties do not have to experience the long and expensive process of litigation before the court. As a result, they do not only save on money but as well as on time.
The speedy resolution of conflicts, Cruz added, could be translated into growth because it avoids the delays in project implementation.
This salient feature provided by CIAC would benefit the contractors, real estate developers, construction materials suppliers, engineers, architects, and local government units.
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