Advantages & Disadvantages Of Conciliation
Advantages
- Conciliation is mainly used as a preventive method of resolving disputes, unlike in mediation or arbitration where the dispute is already ongoing. A conciliator is normally appointed at the onset of a likely dispute.
- Conciliations are concluded much faster than litigations.
- Given the confidential nature of the Conciliation process, which is also done “without prejudice”, in case the parties do not agree on a settlement, the reasons for the process are kept strictly between the parties involved.
- Costs relating to a conciliation and incurred by the parties, are significantly less compared to other ADR processes or litigations.
- Conciliation being a preventative measure to allow the parties to resolve their differences with the benefit of maintaining business relationships.
- Conciliation proves to be useful when the parties want the input and opinion from an independent, neutral and unbiased Third Party.
Disadvantages
- Conciliation is dependent on the Parties accepting the authority of the conciliator and willing to achieve a resolution. In the event the parties involved in the conciliation do not have the right attitude, the conciliation may prove to be inefficient and a waste of time and money.