To solve construction contract disputes, mediation is not only fast and inexpensive, it keeps business relationships and reputations intact. In mediation there is nothing to lose. If it doesn't work, parties can always fall back on arbitration or litigation. But mediation seems to work. About 90 percent of the construction parties who decide to mediate resolve their disputes amicably. Mediation works best if it's sought right away, before the parties polarize and become unwilling to negotiate. Negotiated settlement is what mediation is all about. Both sides must be willing to accept less than their total demands.