Conciliation or mediation is a voluntary process in dispute resolution whereby a neutral third 
party who is independent of the parties, assists them to reach agreement by developing options for them. Conciliation/mediation may be used in both domestic and international cases where parties opt to conciliate either preliminary to arbitration, in lieu of arbitration, or in the course of arbitration.

The conciliator/mediator does not impose a settlement upon the parties. He or she may propose a settlement if the parties so wish. The function of the conciliator/mediator is to help the parties to come to a settlement. If this fails, that is the end of the matter. The procedure is very flexible and the conciliator/mediator can confer with each party separately. The process could take one day, a few days, or longer, if circumstances permit.

Conciliation/Mediation in the KLRCA
The Rules for conciliation/mediation under the auspices of the Centre incorporate many of the provisions of the UNCITRAL Conciliation Rules. In the Rules, the words "mediation" and "conciliation" are used interchangeably and reference to "conciliator" and "conciliation" shall include "mediator" and "mediation". The conciliator/mediator may also make proposals for a settlement of the dispute only at the request of or with the consent of all parties.

The Centre offers facilities and assistance for the conduct of conciliation/mediation proceedings, including the enforcement of awards made in the proceedings held under the auspices of the Centre.

Parties are free to choose their own conciliators/mediators in the manner indicated in the Rules but they may also request that the Centre appoint conciliators/mediators from its international panel. There shall be one conciliator/mediator unless the parties agree that there shall be two or three conciliators/mediators. Where there is more than one conciliator/mediator, they ought, as a general rule, to act jointly. If the parties fail to reach agreement on the choice of the conciliator(s)/mediator(s), the Director of the Centre shall assist in the appointment of conciliators/mediators. The costs of conciliations/mediations include administrative charges as well as the fees of conciliators/mediators. The party initiating conciliation/mediation shall submit a written request to the Director of the Centre.