The costs of mediation or the cost advantages of mediation compared to other procedures - for example in court - can be divided into different areas:
In general, it can be said that mediation is usually cheaper than other procedures, since judicial procedures include Attorney or litigation costs. In court proceedings, depending on how high the legal dispute is, this can result in significantly higher costs.
Other cost advantages are:
- Billing is based on time:
At the beginning of a mediation, the hourly rates are clarified, whereby there are different fees depending on the type of mediation (mediation in business, family mediation, mediation between refugees, mediation at school / kindergarten, etc.)
If you have any questions in this regard, please contact me personally.
- Savings through fast mediation processing:
Since mediation is billed at hourly rates, it is up to the parties to determine how much the mediation will cost. It is up to the mediands how constructively they work in mediation and how quickly they come to an agreement.
- Division of costs:
In addition, the costs will be shared by the parties, unless otherwise agreed in writing. In internal mediations, the employer usually pays the costs.
In addition to the above points, other agreements can be made. Among other things, agreement fees for successful mediation will also be agreed, whereby the hourly rate will fall lower. A flat fee for the entire mediation is also possible.
Indirect costs of a conflict:
Compared to a court or other process, indirect conflict costs can also arise, the longer the conflict lasts. These are the following:
- Loss of reputation and possibly lower business purchases
- Loss of time and delay of projects
- Destruction of business relationships and thus further costs that result from the partner possibly demanding money back
- Increased costs for employee and management time
Mediation can almost avoid the above-mentioned points through discretion, efficiency, confidentiality and mutual consent.