If our contract has an arbitration clause, can we still mediate?

Yes. An arbitration clause and mediation are not mutually exclusive. Mediation is a facilitated negotiation in which a neutral helps the parties reach their own voluntary agreement, while arbitration is a binding adjudication in which a neutral decides the outcome. Parties bound by an arbitration clause frequently attempt mediation first, and many arbitration rules and contracts expressly encourage or require a mediation attempt before the arbitration proceeds. Resolving the matter in mediation can save the substantial cost and time of a full arbitration, and nothing said in mediation compromises the party's position if the arbitration later goes forward.