SureTec Mediation
This information is for those looking for information to aid in the selection of a mediator, and those considering utilizing the services of SureTec's primary Dispute Resolution Professional, Steve Nelson (mediation bio here). The information on locale, position statements and fees is general and may vary by case. Please contact Steve Nelson if you have any questions.
Background of Steve Nelson, Construction Industry Mediator
I practiced law in Dallas, Texas for twenty years, most of those at Winstead Sechrest & Minick, P.C., where I headed up their construction practice. In 1995, I became the CEO of Faulkner Construction Company, a large construction firm headquartered in Austin. While I was CEO of that company, I was part of executive management and General Counsel for sister companies involved in real estate development and the mechanical, stone & tile, road & bridge, and concrete pumping businesses. In 2001, I left Faulkner to join a long-time friend and client at SureTec Insurance Company, a national surety company and SureTec Information Systems, Inc., a construction financial services and risk consulting company. SureTec was sold to Markel Corporation in 2017 and I remained with Markel. I enjoy mediating so much that we just worked it into our business plan. Click here for more information on Markel Surety (formerly SureTec).
I have been licensed as an attorney in Texas since 1976. I am a Board Certified Construction Lawyer by the Texas Board of Legal Specialization. I also hold licenses as a Property and Casualty Insurance Adjuster, Property and Casualty Agent, and Managing General Agent in Texas and non-resident licenses in several other states.
I am a Fellow of the American College of Construction Lawyers, and have previously chaired the Construction Law Sections of the State Bar of Texas, the Dallas Bar Association, and the Austin Bar Association. I also have been active in lobbying the Texas Legislature for legislation in the interests of the construction industry.
I have been mediating for thirty years. My initial training was with the Dallas Bar Association, U.S. Arbitration & Mediation, Inc, the American Arbitration Association, and the Advanced Mediator Institute. More recently, I have taken advanced training from the Association of Attorney-Mediators, International Academy of Mediators, and the Center for Public Policy Dispute Resolution at the University of Texas, where I am a Fellow and member of its Advisory Council. I am a Certified Mediator by the Association of Attorney-Mediators, a Credentialed Distinguished Mediator under the Texas Mediator Credentialing Guidelines, and meet all requirements for Texas court annexed mediation. I am an Adjunct Faculty member and teach a graduate level course at the University of Texas School of Civil Engineering on “Construction Industry Dispute Resolution & Avoidance.”
I have mediated over 1000 construction cases. Most were multi-party, and about half involved a public owner or public project of some sort. Many were done before any litigation or arbitration had been commenced, and about half were done during some stage of the litigation process. Over 90% of the cases have settled at, or as a result of, mediation; something I attribute more to the quality and professionalism of the advocates and the wisdom of construction industry businesspeople than I do to my own skill.
My Mediation Style
If you were to dig into the literature available on the subject of mediation, you would find that some practitioners try to label mediation styles and processes as either “facilitative” or “evaluative.” All mediators, regardless of style, must remain impartial and neutral, but mediators adopt different approaches, methods, and styles to “facilitate” a resolution. While I will resist any definite label being applied to my approach to this process, I have found that a more evaluative process tends to produce better results in the resolution of construction disputes. To be effective with that style, I have found that there are several things I do that differ from those that a mediator handling a personal injury or family matter might do:
- My own review of underlying contracts, reports, deposition testimony and relevant, in addition to the advocates’ position papers, increases my ability to be effective in what I do.
- Ex parte communications between counsel, their clients, and me are encouraged.
- Before the opening session, I like to know the facts, positions, and settlement history of a dispute. Too many opening sessions have further polarized the parties when the mediator did not have the advance opportunity to counsel with the parties about a planned “scorched earth” opening presentation or surprise. More and more, I find it helpful to visit with the parties on large matters in advance of the date set for mediation.
- I favor long, one day mediations over multiple days of mediation...one half of every day after the first is often spent undoing “buyer’s remorse” that set in the night before.
While my style is more evaluative and more into the details of the dispute, I am not coercive or intrusive. I firmly believe that settlements must be made by the parties themselves. I will not attempt to impose, coerce, or force a settlement on the parties. I won't give up easily either.
Disclosures, Conflicts, Impartiality and Bias: I have disclosed, or will disclose, to you all material relationships, dealings, and prior contact with the parties, their counsel, and any principals, witnesses, experts, consultants, insurers, sureties, etc. you identify for me. If there is any relationship that precludes me from serving in an impartial and neutral manner, I will decline the assignment. If any of the disclosures raise questions that are not answered to your satisfaction, please let me know and I will withdraw if I cannot assure you of my neutrality. When you consider the business dealings between my companies and many construction companies, bar and trade association activities, and prior legal and dispute resolution engagements, it is rare that I have not had dealings with some or all of the counsel, experts, insurance carriers or parties in major construction disputes. Many contractors and subcontractors are either bonded by SureTec or have bonds written in their favor. Often those companies consider that relationship confidential, and I will not disclose those surety relationships unless I have been personally and directly involved in a claim or transaction that might create a true conflict of interest. It is my hope that those dealings will not always be viewed as a disqualifying factor, but as what they often prove to be: the basis for credibility that allows me to be more effective in the mediation process.
What the Rates Reflect: I’m often asked, “Are you moonlighting, or do these fees go to Markel?” My services are provided through, and all fees are billed and collected by, Markel’s risk consulting subsidiary, SureTec Information Systems, Inc. While we have included these services in Markel’s business plan, I am still a full time officer and employee, with responsibilities to oversee all claims and other management functions of Markel Surety’s claims. As such, my time spent in third party mediations has to be balanced against our opportunities and my role in our surety, insurance, and risk consulting business, and my fees may be higher than some of the excellent full time construction mediators. It’s the only way I can justify my commitment to both roles. I know I will have priced myself out of the market for many mediation opportunities. If the mediation fee is a determining factor in your selection of a good construction mediator, let me know and I will be happy to refer you to other very qualified mediators.
Mediation services are provided on a daily rate per party, unless other arrangements are made.
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Number of Parties |
Mediation Locale |
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Where multiple parties are represented solely by a single attorney, they will typically be considered one party. In insurance driven cases, a party and its insurers are considered one party unless the coverage issues are so contentious that an extraordinary amount of time is required to deal with coverage issues, Additional Insured issues, or disputes between multiple carriers |
Daily Rate for Mediations in Dallas, Texas or within 100 miles of Dallas. A true “full day.” This means no overtime charges that day. As long as I get home before sun up for Dallas mediations. |
Daily Rate - Other Major Cities with non-stop air service from Dallas in TX, LA, OK, NM, and AR A true “full day.” This means no overtime charges that day. As long as I catch the last flight home that night, your fee and expenses are covered. |
Daily Rate - All other Locales A true “full day.” This means no overtime charges that day. As long as I get back to the hotel that night, your fees and expenses are covered. |
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2 Parties |
$3,750 |
per party |
$ 4,000 |
per party |
$4,250 |
per party |
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3-5 Parties |
$2,500 |
per party |
$2,750 |
per party |
$2,900 |
per party |
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6-9 Parties |
$1,650 |
per party |
$1,800 |
per party |
$1,950 |
per party |
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10-12 Parties |
$1,250 |
per party |
$1,350 |
per party |
$1,500 |
per party |
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More than 12 Parties |
$1,000 |
per party |
$1,100 |
per party |
$1,150 |
per party |
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Travel Time |
Included in Daily Rate |
Included in Daily Rate |
Included in Daily Rate |
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Travel Expense |
N/A |
Included in daily fee unless requiring more than one night of hotel per day of mediation. |
Included in daily fee unless requiring more than two nights of hotel per day of mediation. |
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Mediation Lunch for Participants |
Box lunch/ sandwiches generally included; catered or hotel conference center lunches may be billed extra. |
Box lunch/ sandwiches generally included; catered or hotel conference center lunches may be billed extra. |
Box lunch/ sandwiches generally included; catered or hotel conference center lunches may be billed extra. |
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Pre-Mediation Consultation, Research, and Review of Position Statements |
Included in Daily Rate |
Included in Daily Rate |
Included in Daily Rate |
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Post Mediation Consultation and Continued Settlement Efforts |
Typically included, any extraordinary time will be billed at $500/hour beyond that. |
Typically included, any extraordinary time will be billed at $500/hour beyond that. |
Typically included, any extraordinary time will be billed at $500/hour beyond that. |
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Pre- or Post- Mediation Face to Face Meetings or extensive private pre-mediation discussions with Parties |
Billed at hourly rate to Individual parties incurring same. |
Billed at hourly rate to Individual parties incurring same. |
Billed at hourly rate to Individual parties incurring same. |
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Venue Expense if not in my office or another office volunteered by counsel. I try to avoid hotels and venues with room charges if at all possible |
Billed extra |
Billed extra |
Billed extra |
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Fees: Unless otherwise agreed in advance, I charge a flat rate per day of mediation per party. The fees reflect the demand for my services, the nature and complexity of the cases, the exponential difficulty as additional parties are added to the mix, and the commitment the parties are expected to bring to the process. Payments should be made to SureTec Information Systems, Inc. and sent to SureTec Information Systems, Inc., Attn: Mediation Accounting, 9737 Great Hills Trail, Suite 320, Austin, Texas 78759. Our Federal Taxpayer ID Number is 76-0587786. A W-9 is attached. Unless other arrangements are made, I will look to counsel as the responsible party to pay all mediation fees and expenses. Prior to mediation, we will send a fee statement to counsel of record for each party, based on the schedule set forth below. We have highlighted the applicable per party fee based on information available to us at the time of scheduling. Payment is due by the date of mediation unless other arrangements are made. In the event that a mediation is cancelled or postponed, the fees will be returned or held as a retainer for a rescheduled mediation.
Location of the Mediation Session
I prefer that we meet in my office or in the offices of one of the counsel for the parties. Lawyer’s offices tend to have the facilities and support to allow parties to conduct at least some other business during down times. The availability of legal secretaries familiar with the dispute to assist in documenting any agreement can also be a plus. Where a neutral site is required, I will make the necessary arrangements. I encourage the parties, however, to begin the settlement process by considering the economies of using one of their own available office facilities.
Scheduling
This is probably the hardest part of most mediations. I will do my best to accommodate your schedules. My assistant, Roni Seely, keeps my calendar and can give you tentative available dates. Her direct number is (972) 265-8310 and her email address is rseely@markelcorp.com. I prefer not to commit to a date until we know who all of the parties and their counsel are, and something about the dispute. If you would like for us to contact all parties about available dates, please furnish email (preferred) or fax numbers and we will do so.
Settlement Agreements: Good practice requires that I advise the parties that they seek independent counsel, that what I am doing is not the practice of law, and that I am not giving legal advice when I ask questions or make suggestions in the course of mediation. I strongly encourage the parties each to send me a draft settlement agreement before we meet. Whatever my role in the development of the initial text of such a document, each of the parties is responsible for their own review of the document by their chosen counsel. In the end, any settlement agreement is yours, not mine.
Position / Interest Statements: I want to know about the case well in advance of the day of mediation. I am not looking for a trial brief. I want something that helps me help you settle the dispute. Whether you want to do that with a phone call, letter, e-mail, formal position statement, etc. is up to you. I will also read depositions, expert reports, correspondence, pleadings, and anything that will help me better understand the dispute. I will treat whatever you send as confidential. I would like to have these two weeks before mediation. I cannot absorb a box of documents if you send them to me the night before we meet. While you do not need to exchange position statements, you may find it helpful to exchange statements of your position (perhaps without some of the more candid comments you have sent to me). That’s up to you.
Besides the background on the dispute, I would like to see:
- Your description of any settlement discussions that have taken place, including the history of any offers and counter-offers.
- Your description of what you think the other party’s position is.
- Any observations you may have about who the decision makers(s) are for the other parties.
- Anything that you think will help me help you.
