Conflict Avoidance Flashcards
Can you explain the RICS Global Professional Standard on Conflicts of Interest (2017) and why it is important in your role?
RICS Global Professional Standard on Conflicts of Interest (2017) is a mandatory framework used to help surveyors identify, manage and disclose conflicts of interest – to maintain professional integrity.
It provides information on how to handle and avoid conflicts.
What are the appropriate methods of conflict avoidance, management and dispute resolution?
Conflict Avoidance - this requires clear and careful drafting of contracts; managing all parties expectations; adopting proactive conflict avoidance risk analysis to understand what could do wrong and where; keeping good records.
Conflict Management - this involved processes and tools to manage disagreements and disputes; if both clients agree in writing and get informed consent then some management techniques can be an information barriers (password protected) or physical barriers.
Dispute Resolution - this is finding a resolution of a dispute between two or more parties. This includes negotiation, mediation, conciliation and adjudicative processes.
Can you name some dispute resolution procedures?
Negotiation – this involves problem-solving between parties.
Mediation – this involves third-party intervention but remains natural and does not suggest specific solutions.
Conciliation – this involves third-party intervention but proposes solutions or suggestions.
Adjudicative processes – this involved litigation or arbitration.
What are some of the Alternative Dispute Resolution Procedures?
ADR are dispute resolution processes that fall outside the scope of court litigation (law).
- Mediation - this involves third party intervention but remains natural and does not suggest specific solutions.
- Independent Expert
- Arbitration (PACT)
Why might you prefer to pursue ADR rather than litigation through the courts?
Typically, cheaper and quicker than litigation.
More flexible process than court proceeding.
Can be a confidential process
What is a conflict of interest?
When a surveyors ability to act IMPARTIALLY comes COMPRIMISED
How do you identify potential conflicts before accepting instructions?
- I would start by identifying the parties and property.
- I would then first think about my involvement and check if there are any personal or financial interest than could affect my judgement.
- I would then use salesforce, an internal system that runs checks against the property and client, preventing accepting instructions that could lead to conflicts.
- If no salesforce, I would check our folders and files, then email heads of departments, speak to admins within those teams who have records to cross check.
What processes does your company have in place to handle conflicts of interest, and how do you apply them?
Use an internal database, Salesforce, before accepting new instructions.
Implementing information barriers to prevent sensitive information from being shared across teams.
Disclosure where any potential conflicts must be declared to both parties, giving them the option to proceed or withdraw.
I ensure these to communicate transparently.
How would you handle a conflict?
I would pay authority to the RICS Professional Standard on Conflicts of Interest (2017) – effective Jan 2018.
I would then start by trying to avoid the conflict (STEP 1), then if I decided that I can manage the conflict I would then provide written advice (STEP 2) to both parties about the nature and request written permission and consent, Once both parties had agreed in writing I would ensure conflict management (STEP 3) by implementing information/physical barriers.
Can you give an example of an information barrier you could use?
Restricted access controls on document e.g. password protected files or have private SharePoint sites – where access is restricted to maintain confidentiality and avoid conflicts of interest.
Why is it important to conduct a conflict of interest check before accepting an instruction?
IMPARTIALITY - confirms that I can act fairly and without bias.
CLIENT TRUST - building long-term relationships
LEGAL & ETHICAL COMPLIANCE - failing to do so could result in breaches to RICS professional Standards, legal disputes or reputational damage.
What strategies do you use to avoid conflicts between parties in a project?
Clear contract drafting - all terms are unambiguous to avoid misunderstanding
Open dialogue - encouraging communication between all parties early to address any concerns or misunderstanding.
How does the Complaints Handling Procedure (CHP) support conflict avoidance, and how do you ensure clients are aware of it?
The Compliant Handling Procedure supports conflict avoidance by providing clients with a formal mechanism to raise concerns.
I make the client aware of the CHP by including in the initial client agreement, providing a written copy in the ToE and explaining our commitment to providing a high level of service.
Can you explain what alternative dispute resolution (ADR) is and when it would be appropriate to use in your role?
Alternative Dispute Resolution refers to method of resolving disputes outside of court, such as mediation, arbitration or conciliation.
It would be appropriate to use when:
Parties wish to avoid litigation
A confidential resolution is preferred
The dispute requires a specialised understanding, e.g. dilapidations, where an expert opinion is necessary.
It is generally faster – takes less time than standard court proceedings.
It is cheaper – less money is spent on professional fees for litigation.
It is confidential.
What is an information barrier and how is it used to manage conflicts of interest within a firm?
Information barrier – a set of protocols put in place to prevent the flow of sensitive information between different departments or teams within the same firm that may be working with competing clients.
It is used to protect confidentiality and ensure no conflicts of interest arise.
Usually in the form of segregating teams and restriction access to information.
If a conflict arises after you’ve accepted an instruction, how do you manage the situation to ensure compliance with RICS standards?
If a conflict arises after I’ve accepted an instruction, I would disclose the conflict immediately to all parties so they are away of the situation – maintaining transparency and impartiality as required by the RICS Global Professional Standard on Conflicts of Interest (2017).
I would then employ strategies like set up information barriers, seeking external advice or facilitating an open dialogue with the clients involved explaining the potential impacts and ways to mitigate them.
Would you ever withdraw from an instruction due to a conflict?
Yes – if the conflict of interest cannot be effectively managed or mitigated.
There are situations where continuing with an instruction could compromise being impartial and integrity.
How do you choose between methods like negotiation, mediation or arbitration when advising clients on resolving disputes?
Depends on the nature of the dispute – negotiation is first option if conflict is straightforward and parties are open to amicable discussions.
Mediation is preferred if dispute is complex and but parties engage in discussion with the help of a neutral third party.
Arbitration is chosen when parties prefer a more formal process requiring specialist knowledge and want to avoid the length and expense of litigation.
Costs and time – negotiation is quickest and less expensive. Mediation avoids court fees and is faster than arbitration or litigation. Arbitration is more expensive but faster and cheaper than litigation.
Confidentiality – mediation and arbitration offer a high degree of confidentiality than litigation which is held in public courts
What is an expert witness and how does this play a role in dispute management?
An expert witness is when a surveyor provides evidence to a judicial body.
Why might a conflict exist between the valuation and agency team?
A conflict might exist between the valuation and agency team because the agency team, tasked with selling the property, may prefer a lower valuation to make the sale easier and attract a more willing seller. Meanwhile, the valuation team is responsible for providing an accurate, market-based valuation, which could be higher and may not align with the agency team’s goals.
Why must an instruction be declined if a conflict is found?
The RICS Professional Standard on Conflicts of Interest (2017) is mandatory practice which states so.
A conflict may introduce impartiality to your work which can lead to poor quality service, in line with RoC (2021) – diligent and quality service.
What is the difference between an arbitrator and an independent expert?
An Arbitrator can only use evidence which is provided to them by both parties, they are not liable for negligence and cannot be sued and is governed by the Arbitration Law (1996).
An Independent Expert are able to collect and include their own evidence, they are not liable for negligence and damages, there is no legislation but a guidance note – Independent Expert Determination (2016).
Can you tell me about PACT in relation to lease renewals?
PACT – Professional Arbitration on Court Terms.
This is a form of ADR used in lease renewal or rent terms disputes where an arbitrator or independent expert is appointed – both parties benefit here from a property professional rather than a judge, plus it is also quicker, cheaper and confidential.
Tell me about your role if you were acting as an expert witness or advocate.
If acting as an expert witness
My duty is to the court and not the client
I am to provide an impartial and unbiased opinion based on the facts.
I confirm the facts I present are accurate.
I would not accept an incentive fee – my remuneration would be based on an hourly basis/fixed fee.
If acting as an advocate
My duty is to the client and not the court – I would provide the client with strategic advice.
I would still maintain professional integrity.
What is the RICS guidance related to dispute resolution?
RICS Professional Standard on Conflicts of Interest for Members Acting as Dispute Resolvers (2020) – effective Feb 2021.
RICS Guidance Note on Surveyors Acting as Expert Witnesses – amended Feb 2023.
RICS Guidance Note on Surveyors Acting as Advocates – Feb 2017.
