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.