How much does mediation cost?
Posted on March 01, 2017 by Claire Scaramanga
As an accredited commercial mediator, Jeremy Frost gives us an insight into what you can expect to pay for a skilled mediator.
Let’s jump straight in with the big question – how much does mediation cost?
For commercial mediation, this is normally charged on a day rate and the average industry starting point will be around £2,000, assuming an agreement can be reached within a day. The classic mediation scenario will take place over one day, with the mediator going between two rooms, with one party in each room.
However, don’t forget that if your dispute is for a significant sum of money, then the fees are likely more than this £2,000 ballpark and they may also be proportionate to the value of the dispute.
If you have a lawyer attending the mediation with you, then do not forget that they will also charge you for their time, in addition to your share of the mediation fee.
Who pays for the mediation?
Both parties will normally each pay 50% of the mediation costs. This ensures that you all have “skin in the game” and are committed to the process.
Mediation fees are always paid in advance and they may include VAT if the mediator is VAT registered (a recoverable cost if your company is also VAT registered).
How should you decide whether the cost of mediation is worth your while?
When deciding whether the mediation is worth the cost, you should consider the value of the dispute in relation to the mediation fee you will be charged.
If you decide to use a mediator, go into the mediation with the mindset of intending to find an agreement and, during the mediation, continue to accentuate the areas of agreement.
If you reach agreement during mediation, there is every chance that it will cost you less than it would have done to instruct lawyers and take court action.
Can mediators take a percentage of the agreed settlement?
The mediator is representing both parties and therefore must remain impartial for the process to succeed. Taking any proportion of the settlement would completely undermine that impartiality.
Can you get a mediator for free?
Yes, you can in some circumstances, but this is normally for personal disputes, not commercial. Some charities can provide a mediator to work for free, for example, housing associations will do so for tenant disputes.
How can you get a specific cost for your case?
Give me a ring on 0845 260 0101 and we will talk through the case so I can provide details on any specific points and costs.