Alan Shatter (Dublin South, Fine Gael)
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Question 107: To ask the Minister for Finance the provision in new public works contracts for the use of mediation to resolve disputes prior to use of arbitration with a view to saving considerable sums in legal fees and other related expenditure and to more readily facilitate the resolution of such disputes; and if he will make a statement on the matter. [35483/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As costs of arbitration in relation to public procurement can be significant, alternative and more cost effective dispute resolution procedures should be explored by contracting authorities before disputes are referred to arbitration. Section 3.3.6 of Guidance Note 1.5 in the Capital Works Management Framework published on my Department's website www.constructionprocurement.gov.ie is relevant to this matter. It envisages that, as a first step, informal intervention by third parties should be considered with a view to resolving disputes in a non-adversarial way (including mediation) prior to the activation of formal dispute resolution mechanisms for public works contracts. In addition, once formal dispute resolution proceedings are initiated, conciliation (another cost effective resolution procedure) must be utilised. Only if that procedure fails and disputes continue may matters under contention be referred to arbitration.