Model Mediation Clause: Proactive Dispute Prevention in Contracts

Including a Model Mediation Clause in contracts is a proactive step toward managing potential disputes before they escalate. The Bangladesh Institute of Arbitrators (BIArb) recommends the use of this clause to encourage early, amicable resolution through structured mediation, saving both time and legal expense.

Drafted in accordance with international best practices and compliant with national ADR frameworks, the BIArb Model Clause ensures that parties commit to engaging in mediation as a first step in dispute resolution. This not only fosters goodwill and commercial continuity but also reflects a modern, responsible approach to risk management.

Key Benefits of the BIArb Model Mediation Clause:

• Encourages timely, good-faith negotiations

• Preserves business relationships and reputations

• Reduces litigation risk and associated costs

• Supports enforceable, interest-based settlements

By embedding the BIArb Model Clause in contracts, parties signal a clear commitment to fairness, professionalism, and collaborative dispute resolution from the outset

Suggested Mediation Clause

“Any dispute or difference arising out of or in connection with this agreement at the first place be referred to Bangladesh Institute of Arbitration (BIArb) for mediation in accordance with its current Mediation Rules. If the dispute or difference cannot be resolved within sixty (60) days starting from the date of appointment of the Mediator(s) or if the mediation is abandoned by the mediator(s) then such dispute or difference shall be referred to and determined by arbitration at BIArb by one or more arbitrator(s) pursuant to BIArb Rules of Arbitration.”