Confilct Avoidance And Dispute Resolution Flashcards
What should you do if you become aware of a conflict of interest?
Follow the guidance from RICS professional statement of interest 2018 as well as Bidwells procedure
What is a conflict of interest?
When a companies independence or impartiality is threatened due to a conflict between parties
What is conflict avoidance?
Where a conflict exists so you do not accept an instruction
Causes of disputes?
Different terms between parties
Poor construction of contracts - contracts should be clear applicable, have early warnings in place and allow for communication to resolve problems
How to avoid avoid disputes?
Risks should be managed so all parties can avoid disputes before they happen.
Contracts should include early warnings
Contract should specify that parties should work together to avoid disputes
Effective client briefings
Conflict avoidance pledge
What is the RICS profession statement on conflicts of interest m?
Provides rules to RICS members and regulated firms on how to identify and manage potential conflicts.
It provides definitions for the different types of conflict and processes that members must follow.
It is mandatory for RICS members to comply with this statement
What is Bidwells policy on conflicts?
When accepting new instructions prior to accepting you must investigate if any conflicts of interest exist. Must check daily conflict of interest emails
What is informed consent?
Consent given willingly by a party affected by a conflict
What is the ADR
Negotiation - dialogue to reach an agreement that satisfies both parties. Low costs. May not reach an agreement. Parties retain control over the outcome
Mediations - negotiation carried out with the assistance of a 3rd party that does not express an opinion. Is voluntary and flexible. Confidential protects sensitive info and encourages open communication.
Adjudication - legal process whereby an adjudicator reviews evidence by both parties. To come to a decision to determine rights and obligations. Private and more likely to give an outcome.
Arbitration- legal technique governed by arbitration act 1996 whereby an elected or chosen third party reviews case and imposes a decision that is legally binding. Provides a biding resolution that is enforceable. Private. Decision making lies with arbitrator. Costs more.
Litigation - lawsuit within a court of law
