What are CEDR's Model ADR Contract Clauses?
As part of our not-for-profit mission, CEDR provides model alternative dispute resolution (ADR) contracts clauses in 20+ languages, free to download, to reflect best practice and the changing requirements for mediation. We use our knowledge of the 3,000 disputes we handle annually for all ADR processes and in particular the 400 ‘major case’ mediations, where the average cost of each claim is well over £1 million. This helps shape these valuable templates which are widely used in the commercial mediation sector.
The documents cover model procedures for multiple ADR processes as well as clauses for contracts which allow an ADR process to be inserted to resolve disputes.
Why use CEDR’s Model ADR Contract Clauses?
It is now standard practice to insert an ADR clause into any commercial contract.
At its simplest, an ADR clause allows the contracting parties to agree that if a dispute arises, they will use an alternative form of dispute resolution (such as mediation) as a step prior to, or at least alongside, court action or binding arbitration. An effective ADR clause will usually save time and costs, as well as potentially preserve valuable commercial relationships. An ADR clause leaves both parties in control and provides them with a simpler way of resolving a dispute prior to court or arbitration proceedings. It also significantly offers parties a constructive way of proceeding beyond stalled or ineffective negotiations.