What’s the latest in mediation?

In August 2025, the Centre for Effective Dispute Resolution (CEDR) published its 11^th Mediation Audit.

Here we take a look at the highlights and what it means for the construction industry.

The Audit is a useful yardstick of the civil and commercial mediation market in the UK. Started in 2003 by CEDR, it is carried out every two years via a survey of mediators across the UK. It looks at mediation practice and experience, key issues within the field and changes in the last two years. (See CEDR's previous 10th Audit with data from 2022 here.) 

Highlights

• c.21,000 civil and commercial cases were mediated in the year to September 2024. This is touted as a record, up from c.17,000 cases in 2022. This shows strong growth in the mediation market, which will be unsurprising to many.
• 70% of mediations are settled on the day, going up to 87% for mediations settled shortly after. This is down slightly from 72% and 95% in 2022, but still shows a high success rate, which matches anecdotal experience.
• Mediation saves UK business an estimated £5.9 billion annually. This is compared with cases that would otherwise incur wasted management time, damaged relationships, lost productivity and legal fees. It's the same figure as 2022, which is perhaps surprising given the increase in mediation numbers, although it’s still impressive.
• Female mediators represented 42%, mediators from ethnic minority backgrounds represented 8%. This shows little and no increase from the previous 37% and 8% respectively, with much room for improvement.
• The general view is Churchill v Merthyr Tydfil is “going to have a real effect on interest in and take-up of mediation”. Such an effect has been largely anticipated, since the landmark Court of Appeal judgment (Churchill v Merthyr Tydfil Borough Council [2023] EWCA Civ 1416) confirmed courts in England and Wales can (in certain circumstances) order parties to engage in a “non-court- based dispute resolution process” like mediation.
• Growth areas are general civil and commercial disputes, plus employment / workplace, professional negligence and personal injury are prominent. These are the same areas as in 2022, in addition lower value claims are expected to increase in light of court ordered mediations.
• 59% of mediators have used AI (e.g. in admin, summarising, transcription, basic legal research, not direct engagement with parties or decision making) with mixed views. This comes from a new survey question, so there is no previous CEDR data to compare with. However this will be an area to watch closely moving forwards. Although very different to other areas (such as decision making in arbitration), parties will still want reassurance as to how mediators are using AI.
• 38% of mediations are conducted online, 80% believe online mediation will grow. This has dropped from a previous figure of 64%, but it confirms that online mediation is here to stay, along with more hybrid formats.
  
  

What does this mean for construction in the UK?  

The construction industry is a frequent user of dispute resolution. Complex and fragmented supply chains, increasing ESG demands, the need for innovative construction, pressures on cash flow and tight profit margins all make for a high conflict industry. As well as being regular litigators, construction parties in the UK resolve a significant proportion of disputes outside the courts, with adjudication, arbitration and expert determination all commonly used. Whilst certainly not being a magic wand, mediation has developed into a further tool in the toolbox, which has been well used over the years. This aligns with a gradual shift towards more collaboration and early dispute resolution, evident in initiatives like the Hackitt Review, the UK Government’s Construction Playbook and the Conflict Avoidance Pledge; as well as reflected in the dispute provisions of new standard form contract editions.

Recent judicial measures in England and Wales, such as the “mandatory mediation” pilot introduced to certain courts in 2024 (see more here) and the embedding of Churchill into the Civil Procedure Rules, add to the impetus to try mediation. This is especially the case where parties litigating in England and Wales may otherwise be subject to a compulsory mediation order. 

The Audit tells us that strong growth in the mediation market continues, with consistently high settlement rates. This makes mediation an attractive option, particularly as it can (and often is), run alongside other forms of dispute proceedings. Potentially significant cost savings are also appealing to an industry surviving on tight profit margins.  There is also a significant range of mediator fees reported, along with well used online and hybrid mediation options. This makes mediation a more viable option in lower value supply chain disputes.

The range of mediators continues – the Audit notes whilst the legal profession is still the most heavily represented, other mediators come from a wide range of professional backgrounds including construction and workplace professionals, business consultants and managers. As in adjudication, this affords parties a choice of disciplines, where for example a construction professional with a better understanding of technical, quantum or delay issues may be preferred as the mediator.

Given these factors and its ongoing popularity in the UK, we can expect continued good use of mediation in the construction industry.

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