Mediation Case Studies

Construction

How to divide the money?

A plumber and a building company entered into a joint venture to build a large executive house; the plumber supplied some labour and the land, whilst the company provided construction materials and labour. The house was finished, but could not be sold because the parties could not agree on the value contributed by each, and therefore how to share the proceeds; yet both sides were complaining that they had no money!

Let’s meet on site

Chris suggested that all should mediate in the finished but empty house, using garden furniture. Using Excel (again) he compiled a spreadsheet showing stage by stage what each had contributed; with land, bank interest, bathroom fittings down to bags of cement, the divisible profit was soon agreed.

Now the funds could be unlocked!

By this agreement, the parties could arrange for the finished house to be sold, and they knew in advance how much of the proceeds was to come to each of them.