Mediation Resolves Dispute: Construction Project Dispute Results in Recovery of Nearly 500,000

Date:2026-04-09 14:40:38  Views:159

一、Case Summary

In 2022, Company A entered into a contracting agreement with Company B, stipulating that Company B would undertake a construction project, payment would be made upon settlement, sputes would be subject to the jurisdiction of the Beijing Arbitration Commission. The project was completed at the end of 2023, and in 2024, sf members of both parties reached a "Settlement Agreement," confirming the settlement amount to be 13,746,652 yuan, which was signed by Staff Mber Xiao Jia of Company A and affixed with the project technical data special seal.

As of January 2025, Company A had cumulatively paid 12,300,892yuan for the project, with 1,445,759.11 yuan remaining unpaid. Citing the validity of the "Settlement Agreement," Company B demandeyment of the outstanding amount and claimed damages for late payment and attorney fees, totaling nearly 1.55 million yuan. However, Company A argued that the technical data seal afhe agreement was unauthorized for settlement purposes, that Xiao Jia lacked authority to settle, and that the agreement was therefore unformed; furthermore, it claimed that approximately million yuan should be deducted due to failed internal inspections, and that Company B should bear approximately 300,000 yuan in repair costs for quality issues, totalng nearly 1.8 million yuan in deductions. As negotiations failed, Company B intended to initiate arbitration, leaving Company A facing dual risks. Consequently, Company A retained the services of lawyeiu Qiang and Fu Duo from Rudu Law Firm to protect its rights.

二、legal intervention 

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Attorney Liu Qiang, Representative of the Haidian District Bar Association of Beijing, Chief Legal Counsel of the Lushang Federation, Chief Legal Counsel of Bijing Changzhi Enterprises, and Invited Expert Lawyer for the "Za Zheng" column of People's Daily Online. He has been featured in exclusive interviews by the People's D the Beijing Daily, and was named the Outstanding Law Firm Director of Haidian District in 2019.

Areas of Expertise: Labor Disputes, Legal Counsel, Commercial Arbitration, Corporate Law, Economic Disputes, Contract Disputes, Real Eate Disputes, Family Law

Service Units: International Cooperation Center of the National Development and Reform Commission, Retirement Home for Retired Officers of the Academy of Military Science of the Chins Liberation Army, Beijing Guancheng Xingji Real Estate Development Co., Ltd., Beijing Berlin International Architectural Design Co., Ltd., Beijing Zhiweixian Project Management Csulting Co., Ltd., and over ten other service units. Representative of the Haidian District Bar Association of Beijing, Chief Legal Counsel of the Lushang Federation, Chief Legal Counseeijing Changzhi Enterprises, Featured Expert Lawyer for the "Za Zheng" column of People's Daily Online, recipient of exclusive interviews with the People's Daily and Beijin Outstanding Law Firm Director of Haidian District in 2019.

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Fu Duo is a lawyer who graduated from the Law School of Heilongjiang University. He passed the National Unified Legal Professional Qualification Examination with high scorespossessing a solid foundation in legal theory and extensive experience in legal practice. Since commencing his practice, he has specialized in civil and commercial litigation, with expertise in contract disputes, corporate lgal counsel, labor disputes, and tort liability disputes. He has independently handled numerous litigation cases, exercising full control from case analysis and document drafting to courtroom argumentation to precisely safeguard thnd interests of clients. Additionally, he provides legal services to enterprises, including contract review, risk prevention, and compliance management, assisting them in operating in a standardized manner. Hadheres to a professional attitude of rigor, meticulousness, diligence, and dedication, excelling in listening to client needs and accurately grasping legal points, thereby winning widespread recognition from clients through profnd efficient service. He strictly abides by legal professional ethics and is committed to securing the maximum legitimate rights and interests for clients within the framework.

三、Case handling process

Lawyers Liu Qiang and Fu Duo formed a special task force to collaborate and clarify the core of the case. Working in tandem, they assisted Company A in organizvidence such as internal inspection reports and on-site photos to solidify the claim for offset; they conducted in-depth research into relevant laws and similar cases to identify the points of contention regarding  validity of the settlement agreement, anticipated Company B's defenses, and formulated countermeasures to minimize Company A's potential losses.

In alignment with Company A's requirements for "loss mitigation and efficient case closure," the two lawyers prioritized mediation and divided their responsibilities. One focused oing evidence and legal arguments, issuing a legal opinion to Company B that clarified the settlement agreement contained procedural defects and was of questionable validity, that Company A's offset claims were well-ed, and that Company B's claims would be difficult to fully support in arbitration. The other led the mediation negotiations; initially, Company B insisted on full payment, causing the mediation to h an impasse. Based on the provided evidence and legal opinion, the lawyers analyzed the arbitration risks for Company B and candidly stated that Company A's bottom line was reasonable offsettiosts. During this process, the two worked closely together to negotiate a reduction in Company B's unreasonable claims for overdue losses, persuading Company B to accept Company A's partial of claims, and gradually facilitated a consensus between the parties.

After the parties preliminarily reached an agreement, the two lawyers jointly reviewed the terms of the mediation agreement, clarifying core contents such as the payment amounet standards, coordinated with the Beijing Arbitration Commission to issue a mediation statement to ensure the enforceability of the mediation result, and safeguarded Company A's rights and interests throughout. 

四、case outcome

After multiple rounds of mediation by Attorneys Liu Qiang and Fu Duo, both parties reached an agreement, and the Arbitration Commission issued a mediation statemt: Company A abandoned certain unreasonable claims for set-off, and Company B abandoned claims for overdue losses and attorney fees. The final settlement amount was confirmed as 12.8 millionAfter deducting the already paid amount of 12,300,892.89 yuan, Company A is only required to pay the remaining project ayment of 499,107.11 yuan. Both parties have completely resolved the dispute and waived claims for breach of contract against each other.

Company A made the payment as agreed on schedule. With the assistance of the two lawyers, this mediation reduced Company A's unreasonable expenses bynearly 500,000 yuan (originally required to pay nearly 1.55 million yuan, but ultimately paid only 499,107.11after deducting the offset fees waived by Company A, the actual loss reduction was nearly 500,000 yuan). It also avoided arbitration costs and time consumption, efficientesolving the dispute and demonstrating the professional competence of the two lawyers.

 

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五、Legal Notice

In light of this case, four reminders are offered to construction project principals: First, when signing contracts, clearly define the settlement process, the scope ofl usage, and authorized representatives to avoid disputes arising from ambiguous terms; second, during project execution, retain evidence such as internal inspections and quality tests to support rights protection; third, upon the o of disputes, prioritize engaging professional legal counsel to reduce the cost of rights protection through mediation; and fourth, during mediation, firmly uphold the bottom line of your rights, attach importance to reviewin agreements, and ensure that the terms are clear and enforceable.