If you are considering entering into a contract with someone you may want to include a mediation clause in the contract. This will mean that if the contract doesn’t go according to plan and if there is a dispute then you can pre-agree to mediate.
Obviously as mediation is voluntary there may not be a settlement after the mediation. So mediation clauses include a fall back either arbitration or litigation.
The benefit of including mediation as the means of resolving disputes in the first instance is that no one needs to feel they are showing their hand by asking to mediate. There is a good chance that you will be able to sort out the problem with the other party without having to get involved in a lengthy and expensive legal action.