Conflict avoidance Flashcards
Give me some examples of the requirements of the Housing Grants and Construction Regeneration Act.
The right to baid in interim, periodic or stage payments
The right to be informed of the amount due, or any amounts to be witheld
The right to suspend performance for non-payment.
The right to adjudication
Disallowing pay when paid clauses
What does the Housing Grants and Construction regeneration Act require in tierms of certifying ocontractor’s requests for payemnt and invoices?
There must be a due date for each payment
There must be a final date for each payment
The conract must require a payment notice to be given within 5 days of the due date,stating what is to be paid and the basis on which it is calculated - this can be a duty of the payer or the payee
You state that the contracts you use should specify the preferred method of ADR – what method is specified in the contracts you use and what are the benefits of this method?
Adjudication – Third party intervention which is binding
28 days to decide
What is the conflict avoidance pledge CAP you mention?
The conflict avoidance pledge (CAP) has been developed by a coalition of professional and industry bodies, and demonstrates commitment to conflict avoidance and the use of amicable resolution procedures to deal with emerging disputes at an early stage.
Explain the different types of ADR?
Alternative Dispute Resolution (ADR) provides a confidential and alternative method of tackling legal disputes which avoids going to court. The most common types of ADR are mediation, conciliation, arbitration and adjudication.
What is a dispute?
Where two or more parties disagree on something.
What are the three pillars of negotiation?
Negotiation – Problem solving between the parties
Mediation/Conciliation - Third party intervention which is not bindgin
Adjudication - Third party intervention which is binding
What is statute adjudication?
It is the right to adjudication that is granted to all parties of a construction contract under the Housing Grants Construction and Regeneration Act.
What is the scheme for construction contracts?
It is secondary legislation that essentially provides adjudicative rights to parties of a contract that do not comply with the requirements of the construction act.
How do you avoid conflict?
The best way is to keep communication clear and constant so that all parties understand what it is that is going on and when there is a dispute, it can be effectively addressed in a fair way.
What is a conflict of interest?
When a duty to act on behalf of one party is compromised or potentially compromised by the duty to act on behalf of another party which having competing interests
What are the types of conflicts of interest?
Party Conflict – working on the same project/instruction but for two separate clients
Own Interest – when the duty to act on behalf of a client is compromised by your own personal interests.
Confidential information conflict – when you have a duty to present information to one client but have a duty to another client to keep that information confidential.
What changes did the Construction Act 2009 provide in terms of adjudication?
Can take up to 28 days to complete
What is Adjudication?
Contractual procedure of dispute resolution. The decision is made by an independent 3rd party adjudicator based on the documents submitted. The decision is binding but can be overturned by arbitration or litigation.
What is Arbitration?
Private contractual form of dispute resolution. Independent Arbitrator is selected and forms an opinion based on facts, documents and principles of law. Decision is legally binding with limited lights of appeal. Can take 30 days for documents only hearing but the full procedure does not have a timeframe. It is good as the arbitrator is usually an expert and you can call on witnesses and both parties can agree on the timings.
