Circular No.: C&P/134/10/tl
16 October 2019
Model Mediation Clause
The Singapore Construction Mediation Centre Pte Ltd (SCMC) was launched by SCAL earlier this year to provide mediation service for construction disputes. The objective of SCMC is to encourage mediation as the preferred dispute resolution process in the settlement of construction disputes. More information on SCMC can be found in the attached flyer and through SCAL website: https://www.scal.com.sg/about-scmc .
In view of the benefits of mediation as opposed to arbitration or litigation, we would like to encourage members to consider SCMC as a first resort to resolve construction disputes. SCMC provides SCAL members an unbiased, effective and cost-efficient channel for dispute settlement through mediation.
To this end, members are encouraged to stipulate SCMC in their contracts by incorporating a mediation clause such as follows:
If a dispute arises between the parties under or out of or in connection with this sub-contract or under or out of or in connection with the sub-contract works, the parties shall endeavour to resolve the dispute through negotiations. If negotiations fail, the parties agree that before referring any dispute to arbitration or court proceedings, they shall first refer the dispute for mediation at the Singapore Construction Mediation Centre (SCMC) in accordance with its prevailing prescribed Mediation Procedures. The parties agree to participate in the mediation in good faith and undertake to abide by the terms of any settlement reached.
For further assistance, please contact Ms Lim Tian Lee at 6278 9577.