Mediation Fees

The Fees and Expenses for BDT's mediation services may alter from time to time, however the Fees in relation to any particular Mediation services shall be those that appear on BDT's Website at the time the Application for Mediation is made. Reference should also be made to Appendix 1 of the Mediation Rules.

BDT provides a fully administered Mediation service. To ensure that the cost of Mediation is proportionate to the amount in dispute our Fees are based on the amount at issue.

Preliminary Payment must be made to BDT either before or immediately after the submission of the Application for Mediation. The Preliminary Payment is a payment toward the Mediation Fee, to be calculated in accordance with the Applicant’s reasonable estimate of the aggregate amount in dispute.

The amount of the Preliminary Payment to be paid as security for the Mediation, and the rates for additional Mediation time over and above a period of 8.0 hours on any given Day are as follows:

Value of Dispute Preliminary Payment:
includes cost of mediation up to
8.0 hours per Day
Additional time: Hourly rate for time beyond 8.0 hours on any Day
≤ $ 99,999.99 $8,500.00 $550.00
$100,000.00 ≤ $ 249,999.99 $9,250.00 $600.00
$250,000.00 ≤ $ 499,999.99 $10,000.00 $650.00
$500,000.00 ≤ $ 999,999.99 $10,750.00 $700.00
≥ $1.0M $11,500.00 $750.00
Rights and obligations dispute $10,000.00 $650.00

All Expenses incurred by BDT in relation to the Mediation are additional to the Preliminary Payment and are charged at cost. Such Expenses may include for example, travel costs and accommodation, room and equipment hire, and refreshments.

PRELIMINARY PAYMENT

Preliminary Payment must be made to BDT either before or immediately after the submission of the Application for Mediation. The Preliminary Payment is a payment toward the Mediation Fee, to be calculated in accordance with the Applicant’s reasonable estimate of the aggregate amount in dispute.

No administrative or procedural steps will be taken by BDT in relation to the appointment of a Mediator until the Preliminary Payment has been paid in full.

For the purpose of calculating the value of the dispute, the Parties must include GST, value added tax, or any other similar tax which might apply.

Interest will not be taken into account unless the interest claims exceed the aggregate principal amount, in which case the Mediation Fee will be calculated on the value of the interest claim alone.

The Preliminary Payment for Mediation includes all advance preparation time and attendances by the Mediator at a Mediation session for one Day or part Day (a Day is defined as the 8.0-hour period between 9.00am and 5.00pm on any given Day of the year). Any extra time required for attendances on the duties of the Mediation beyond 8.0 hours on any one Day is charged on an hourly basis. The Preliminary Payment also includes a non-refundable administration fee of $1,250.00 which amount is payable in full, whether or not the claim is settled, or the Mediation Agreement is withdrawn by the Parties, or a Settlement Agreement is made prior to the Mediation.

The Preliminary Payment does not include the usage, hire, and cost of facilities and support services for or in connection with the Mediation.


SUPPLEMENTARY ADVANCES - DISBURSEMENTS

Prior to the first Mediation session, BDT may request a supplementary advance from the Parties towards the expected Fees and Expenses of the Mediation, including the Mediation Fees where it is anticipated that more than one Day of Mediation will be required, and/or to meet travel costs, accommodation, and venue hire.

During the course of the Mediation, BDT may from time to time request one or several further supplementary, interim, and/or final advances and deposits from the Parties towards the Fees or Expenses of the Mediation, incurred or to be incurred on behalf of, or for the benefit of, the Parties. All such advances are to be paid into the trust account of BDT on demand.

Any interest which may accrue on such deposits will be retained by BDT as its own property.

If any required deposit or advance is not paid in full within three Days after receipt of the request, the Registrar will so inform the Parties in order that one or another of them may make the required payment. If payment is not made within a further three Days, the Registrar may order the suspension or termination of the Mediation.

As soon as practicable after the Mediation is concluded, BDT will render a final statement of accounting to the Parties and will reimburse any unexpended balance of the security monies to the Parties in the proportions paid by each Party, unless otherwise directed by the Parties.


WHEN IS PAYMENT REQUIRED?

The Preliminary Payment must be made to BDT either before or immediately after submission of the Application for Mediation.

A Supplementary Payment will be required to be made at least five Days prior to the first scheduled Mediation session, towards the expected Fees and Expenses of the Mediation, including Mediation Fees where more than one Day is anticipated to be required, and/or to meet Expenses incurred or to be incurred on behalf of, or for the benefit of, the Parties.

A Further Supplementary Payment will be required to be made if the Fees and Expenses payable in relation to the Mediation are greater than the security held.

The Parties must pay any Supplementary Payment within three Days of receipt of notification by BDT of such additional Fees and Expenses.

BDT will generally require payment of all Fees and Expenses in advance of delivery of the Mediation services. No administrative or procedural steps will be taken by BDT or the Mediator while any payment is outstanding under these Rules.


LIABILITY FOR PAYMENT

The Parties are free to make any arrangements as between them for payment of the Mediation Fees and Expenses.

However, and notwithstanding any agreement as between the Parties, the Parties will at all times be jointly and severally liable for the Mediation Fees and Expenses, together with any additional costs howsoever incurred by BDT in recovering any overdue monies on a full indemnity basis.


METHODS OF PAYMENT

Payment of all BDT Fees and Expenses may be made by direct credit, bank transfer, or by credit card (Visa and MasterCard only). A merchant transaction fee of 2.75% is payable in addition to the published BDT Fee for all credit card payments.

All Fees, Expenses, and costs related to the Mediation will be invoiced in New Zealand dollars, but may be paid in other convertible currencies at rates prevailing at the time of payment, provided that any transfer and/or currency exchange charges must be borne by the payer.


CANCELLATION FEES

In any case where a Party notifies BDT in writing that a scheduled Mediation session is to be vacated, whether or not the dispute between the Parties has been settled, or the Mediation session is adjourned by agreement, or the Application for Mediation is withdrawn or terminated by the Parties or the Mediator for any reason whatsoever, and the notice is received by BDT (or the termination is made) during ordinary business hours between ten and six Days from and including the date of the scheduled Mediation session, BDT may charge a Cancellation Fee in the amount of 50% of the Mediation daily rate for the entire period of time set aside for attendances on the Mediation.

If such notice is received, or termination is made, five Days or less from and including the date of the scheduled Mediation session, BDT may charge a Cancellation Fee in the amount of 75% of the Mediation daily rate for the entire period of time set aside for attendances on the Mediation.

In the event that the dispute is settled, or the Mediation Agreement is withdrawn by the Parties, the Mediation Fees and Expenses incurred prior to that date, including any entitlement to Cancellation Fees, will be deducted from the amount paid as security for the Mediation.

The balance of the security monies will be refunded to the Parties in the proportions in which the security payment has been made, unless the Parties agree otherwise and instruct BDT accordingly in writing within five Days of notice of settlement or withdrawal of the Mediation Agreement.

In the event that the Mediation Fees and Expenses are greater than the amount held as security, the Parties must pay the balance within three Days of receipt of notification by BDT of such additional Fees and Expenses.

About Us

With 20 years experience in the avoidance, management, and resolution of building and construction disputes, the Building Disputes Tribunal is recognised and respected as the leading independent, nationwide provider of specialist dispute resolution services to the building and construction industry.

Find Out More