×

Construction Industry Disputes: Payment/Non-Payment Disputes

 

In the construction sector, payment disputes are among the most frequent causes of construction site blockages and tension between companies, subcontractors, professionals, and clients.

Mediation offers a quick, confidential, and effective solution to resolve non-payments, disputed invoices, and conflicting financial claims, without initiating lengthy legal proceedings.

Book a free 30-minute consultation with a trained Case Manager.

The problem: missed payments and financial disputes

In the construction industry, payment management is often complex and can generate conflicts due to:

  • complaints about the quality of the work
  • delays or suspensions of activities
  • differences between the estimate and the work actually carried out
  • unapproved or unaccounted for variants
  • liquidity problems between the parties involved
  • different interpretations of contractual clauses

These situations can quickly lead to operational blockages, construction site suspensions, and a loss of confidence.

 

The consequences for companies and clients

Payment disputes have immediate and significant impacts:

  • suspension of work in progress
  • inability to pay staff, materials and suppliers
  • increase in overall construction site costs
  • claims for compensation or penalties
  • tensions between companies and clients
  • risk of long and costly litigation

Timely conflict management can avoid significant financial damage and project paralysis.

 

Why mediation is the most effective solution

Mediation in the construction sector is extremely effective in economic disputes because it allows the parties to reach a quick and pragmatic agreement.
Key benefits include:

  • short times , often a few weeks
  • reduction of costs , compared to legal litigation
  • confidentiality , essential for protecting relationships and reputation
  • flexible solutions , adaptable to the ongoing project
  • possibility of unblocking the construction site and restoring operations
  • management of technical differences with the support of specialized mediators

Mediation allows for the shared redefinition of payments, deadlines, and operating procedures.

Why choose ADR Center

ADR Center is one of the leading European bodies for managing payment disputes in the construction sector.
We ensure professional and impartial conduct of the procedure to help the parties reach a rapid and sustainable agreement.

We offer:

  • detailed analysis of the economic controversy
  • assessment of the responsibilities and expectations of the parties
  • mediation led by experienced professionals in the construction sector
  • concretely applicable solutions, even during construction
  • protection of confidentiality at all stages

Examples of payment disputes that can be effectively resolved through mediation

  • The client disputes an invoice, believing the work to be incomplete or non-compliant.
  • A contractor does not receive the payments due for the progress of the work.
  • The subcontractor claims unpaid fees or late payments.
  • Unplanned variations generate conflicting financial demands.
  • A dispute over additional costs is stalling the construction site.
  • A delay in certifications prevents the issuance or payment of progress reports.

How the service works

  • Book a free consultation with a Case Manager who is knowledgeable in the construction industry .
  • We analyze the economic dispute and the positions of the parties.
  • We evaluate whether mediation is the most suitable solution to unblock the payment.
  • We organize the procedure with an expert mediator.
  • The parties define payments, deadlines and operating methods through a shared agreement.

Questions & Answers

ADR Solve Faq

ADR Solve is a global online service powered by ADR Center that makes it easier and more accessible to start a mediation process to resolve legal disputes, anywhere in the world and in any language.

With the help of a professional, accredited mediator, parties can avoid lengthy court proceedings and find faster, cost-effective solutions to civil, commercial, or family disputes.

When you fill out the online request form, ADR Center will review the information you provide about the dispute and the parties involved.

Based on this, we will schedule a free 30-minute call with one of our experienced case managers, who speaks the selected language.

During the call, you and the case manager will evaluate whether your dispute is suitable for mediation.

If appropriate, you’ll have the option to officially file a request for a First Online Mediation Session and invite the other party to participate.

Once you file the request, our case manager will contact the responding party (by email or phone) to ask if they agree to attend the session.  

  • If they decline, no further action is taken and there are no additional costs.
  • If they accept, ADR Center will appoint a professional mediator (in accordance with our International Mediation Rules) and coordinate the date and time for the online session.

The First Online Mediation Session is a confidential virtual meeting, up to two hours long, where a professional mediator meets both parties to discuss the dispute and possible ways to reach an out-of-court settlement.

The mediator may also use private breakout rooms for separate discussions with each party. All conversations are protected by confidentiality rules under ADR Center’s International Mediation Rules.

After the session, both parties (and their legal advisors, if present) can decide whether to:

  • Continue with additional mediation sessions, or
  • End the mediation process and consider alternative legal actions.

Parties can attend mediation with their lawyers or have them initiate the process on their behalf.

Lawyers and general counsel can actively support their clients throughout the mediation to ensure legal clarity and assist in reaching agreements.

ADR Solve can handle a wide range of civil, commercial, and family disputes of any value.

A full list of eligible dispute types is available in the online request form.

The initial 30-minute assessment call with a case manager is completely free and with no obligation.

Filing a request for the First Online Mediation Session requires a €100 administrative fee. If the other party does not agree to participate, there are no additional costs beyond the €100 filing fee.

If the responding party agrees to participate, each party pays €250 for the session.

If the parties decide to continue with the full mediation, the fees are agreed based on ADR Center fee schedule for full mediation. 

Do you want to resolve a dispute quickly, effectively, and without filing a lawsuit?

Book your free consultation with an expert case manager now.
Copyright © 1998 - 2025 - All rights reserved - P.I. IT14722131001