Mediation certainly costs a fraction of the costs that you would expect for dispute resolution through litigation. Mediation costs are laid out by the hour or by the session. The hourly rate of the consultancy fees is decided on the basis of the complexity of the case and is agreed upon with the mediator before commencement of the mediation process. The fees for the session has to be paid before commencement of the session. Administrative charges as applicable, are also conveyed before hand. The idea is that you should not have any surprises regarding the cost involved.