The Mediation Directive results from the broad consultation on the measures to be taken to promote alternative dispute resolution (ADR) launched by the European Commission in 2002 with its Green Paper on Alternative Dispute Resolution in Civil and Commercial Law2 (the “Green Paper on ADR”). ADR refers to the variety of methods, such as conciliation, arbitration or mediation, by which conflicts and disputes are resolved other than through court litigation. The consultation initiated by the Green Paper concerned in particular the guarantees necessary to ensure that outof-court settlements offer the same guarantee of certainty as court settlements.

Also prior to the Mediation Directive, on 2 July 2004, the European Commission had supported the launching of the European Code of Conduct for Mediators (the “Code of Conduct”), which sets out a number of principles to which individual mediators can voluntarily decide to commit to. It covers all areas of mediation including competence, advertising, impartiality and fees, and is intended to be applicable to all kinds of mediation in civil and commercial matters.

Mediation is currently receiving a lot of attention from the supporters of ADR and is gradually being introduced in legislative instruments as a legally recognised method of resolving disputes.

This paper reviews the Mediation Directive and its possible impact on construction disputes.