Problem
- An average of 2 legal disputes per year with suppliers
- Average dispute duration: 18 months
- Legal costs: CZK 1.25M per dispute
- Damaged commercial relationships
- Management spending 20% of their time with lawyers
Intervention
We analysed the dispute history, designed a mediation clause as a systematic prevention tool, and embedded it in all new contracts.
What remained
The mediation clause is now standard in every contract. The business has a clear process for resolving disputes before they escalate.
Key challenge
The hardest part was convincing management that mediation is not a sign of weakness – it is proactive risk management.
Results
- 3 disputes resolved through mediation (average: 6 weeks)
- 100% of supplier relationships preserved
- CZK 2.25M in legal costs saved
- 15% of management time freed up
A mediation clause is a prevention tool. Not something you reach for when the building is already on fire.
