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APC Revision > Conflict Avoidance > Flashcards

Conflict Avoidance Flashcards

1
Q

What is ADR?

A

Alternative Dispute Resolution

Quick and cheap

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2
Q

Types of ADR?

A

Mediation
Conciliation
Adjudication
Arbitration
Independent expert determination

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3
Q

Formal methods of ADR

A

Arbitration
Litigation
Adjudication

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4
Q

Considerations under ADR

A

Cost
Time
Impact

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5
Q

What is conciliation?

A

Requires a third party
Has no authority
Not binding
Role as a messenger between parties
Conciliator express their opinion
Negotiation breaks down - conciliator prepare recommendation how dispute should be resolved
Neither object in 1 months = final decision

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6
Q

What is mediation?

A

Requires a third party to facilitate negotiations
Attempts to bring both sides together

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7
Q

What is negotiation?

A

Two + parties reach agreement

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8
Q

What is adjudication?

A

Statutory form of ADR
Simple and not lengthy
Requires a third party
Adjudicator decides outcome
Appeal through litigation/arbitration
28-48 day timeframe
Must be a term in contract
Parties select expert

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9
Q

What is Housing Grants, Construction and Regeneration Act 1996?

A

Aims to ensure payment on construction projects is prompt and disputes resolved quickly

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10
Q

What if a building contractor does not contain ADR?

A

Statutory right under Construction Act

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11
Q

What is Arbitration?

A

Governed by Arbitration Act 1996
Control of both parties to submit evidence
Conditions must be met i.e dispute, difference
Binding agreement to submit to arbitration in contract
Kept private
Docs only (28 days), short hearing (30 days), full procedure (long)

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12
Q

What is Arbitration Act 1996

A

Both parties agree to it
Both have discretion to conduct
Provide formal submission i.e evidence, hearing
Kept private

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13
Q

What is Litigation?

A

Legal action through Courts - CPR
Public follows civil procedure
High cost
Used for multi party dispute

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14
Q

Methods of ADR

A

Negotiate
Litigation
Valuation Tribunals
ADR
PACT = Professional Arbitration on Court Terms
Mediation
Conciliation
Calderbank (rent review)
Adjudication
Expert witness

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15
Q

What is independent expert?

A

Expert with knowledge of the area appointed by both
Confidential
Not binding
Flexible
Quick
Decision based on written evidence and personal inquiries

BUT

No legislation governing role
Contractual (binding)
Adversarial (damage reputation)
Limited cost power

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16
Q

What is PACT?

A

Professional Arbitration on Court Terms
Lease renewals only
Non-rent (service charge, break) and rent
Both parties agree to use
Pre issue and post issue

17
Q

What is mediation?

A

Neutral third party - works with all parties
Mediator encourages positive dialogue
Facilitative mediator - encourages dialogue, draws attention to common aims, helps both understand each others position, finds options to resolve. Facilitates discussions
Evaluative mediator - expert is matter and does that of facilitative mediator.
Encouraged by courts
Not to advise
Not binding
Instrumental if goes to court
Minimise disagreement

18
Q

What is CPR?

A

Civil Procedure Rules

Courts encourage ADR before proceeding to litigation

19
Q

What is a Calderbank offer?

A

Private and confidential offer
Intend to settle dispute
Must be genuine offer, capable of being accepted
If not accepted, cannot be revealed to independent dispute resolver until their decision is made and they are deciding how the costs are allocated
Award less than Calderbank offer, party refused to accept can be liable for most/all costs

Calderbank v Calderbank 1976

20
Q

What are the causes of disputes?

A

Rent
Service charge
Dilapidations

21
Q

How to avoid conflict?

A

Regular reporting
Independent reviews
Open and transparent communication

22
Q

What is an expert witness?

A

Appointed to provide testimony in court
High knowledge and expertise in subject area
Duty to the judge

23
Q

What is an expert witness?

A

Appointed to provide testimony in court
High knowledge and expertise in subject area
Duty to the judge
Complex issues: party wall, insurance, injury claims

24
Q

What is RICS role in dispute resolution?

A

RICS Dispute Resolution Service (DRS)
Oldest and largest provider of ADR
Rent reviews, construction adjudication, dilapidations, service charge
28 day timeframe - construction

25
Q

How can risk management help avoid disputes?

A

Identify risks
Allocate risk to best party
Manage risk

26
Q

What is an early warning system?

A

Data on project risk - delay, quality issues
Help PM stay ahead of issues causing delays or cost overruns

27
Q

Where would you find the mandatory RICS requirements for identifying conflicts of interest?

A

Professional standards called conflicts of interest global eff jan 2018

28
Q

Explain RICS Conflict Avoidance Process (CAP)

A

Helps parties avoid prolonged damaging disputes
Contracting parties to identify and dispose of emerging dispute early
Avoid escalation and damage to brand reputation

29
Q

ADR vs litigation

A

ADR - quicker, less formal, cheaper, done in private

30
Q

How to avoid disputes?

A

Clear contract documents and ToE
Effective communication
Record keeping
Written correspondence
Company procedure
RICS guidance and statements

31
Q

Causes of disputes

A

Errors and conflicting information
Poorly defined control procedures
Lacks of knowledge/understanding of obligations
Errors in contact
Delays to payment
Non conformity of contractual obligations
Poor workmanship

32
Q

Factors to consider when selecting dispute resolution

A

Cost in proportion to claim
Timescales
Impact on relations and reputation

33
Q

What is the difference between mediation and conciliation?

A

Mediator is neutral parties to help rebuild relationship and work out solutions mutually. Parties directly engages

Conciliation has same aims but different process. Usually figure of authority but parties turned to for guidance. Provides suggestions for parties to make final decision

34
Q

What is the difference between arbitration and litigation?

A

Arbitration- governed by Arbitration Act 1996, agreement between both parties, discretion as to proceedings conduct, formal submission by parties, expert evidence, hearing and decision by arbitrator, advantages (private, flexible, easier to enforce)

Litigation - presentation in court, process following Civil Procedure Rules, advantages (parties do not pay for court or judge, can deal with multi parties, aim for accessibility, speed and efficiency)

35
Q

Name key features of dispute avoidance?

A

Early engagement - agreement early in the process
Reduced risk - identify potential problems
Flexibility
Cooperation

36
Q

What does PACT mean?

A

Professional Arbitration of Court Terms

For lease renewal disputes

37
Q

What are the RICS DRS areas under your sector?

A

Adjudication services
Commercial rent review appointment service
Commercial rent arrears arbitration service
Dilapidations disputes
PACT
Service charge: dispute resolution
Small business scheme for rent reviews

APC Revision (17 decks)

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