Conflict Avoidance and Dispute Flashcards
What is a conflict of interest?
When your involvement with one party affects your ability to act with impartiality in an instruction.
What literature covers Conflicts of Interests.
RICS Professional Statement: Conflicts of Interest 1st Edition 2017
what are the different types of conflict
Three types of conflict as outlined by the RICS Guidance Note: Conflicts of Interest:
Party Conflict:
a situation in which to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment
Own interest Conflict:
a situation in which to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/ firm (or in the case of a regulated firm, the interests of any of the individuals within that regulated firm who are involved directly or indirectly in that or any related professional assignment
Confidential information Conflict:
Small practice of sole practitioner where there is no conflict checking software.
Self checking must be undertaken.
How do you undertake a conflict of interest check?
We have a conflict check system and I therefore put all the details of the instruction onto the system, including all the parties involved and the building involved and I receive an email confirming if there is a conflict and what actions I should take.
How would you handle a conflict of interest?
1) Consider if it should be avoided or can be managed
2) Disclose the nature of the conflict and how you propose to manage it
3) Advise both clients to seek independent professional advice if they have any concerns
4) Request written confirmation from both parties that they are satisfied with these measures and wish you to proceed. known as informed consent.
5) Once agreement received set up information barrier
what is Informed consent?
Informed consent is the express written consent of a party acknowledging the conflict and the associated risk that they could be adversely affected by a conflict and proceeds to instruct the RICS member/ firm anyway.
Surveyors must only seek informed consent if satisficed that it is in the best interests of all parties to do so.
What can you do if a conflict arises and what is the difference between them.
Conflicts can either be Avoided or Managed.
Avoidance – Don’t accept the instruction
Management - Manage the conflict with information barrier and written agreement of all parties.
What are the practical implications of an Information Barrier?
An information barrier that separates two or more groups, usually as a means of restricting the flow of information. This may include:
Location - working in different locations,
Staff - using different support staff,
Passwords - using passwords to restrict who can view the information
Compliance Officer - the process should be overseen by the firm’s compliance officer.
can you give an example of a conflict that may arise in your day to day work?
A payment dispute between contractor and employer. For example, contractor believes they are owed more and the employer issues a pay less notice. The contractor can refer the dispute to adjudication.
What is RICS Conflict Avoidance and Dispute Resolution in Construction Guidance Note?
- Describes processes for conflict avoidance with the aim of avoiding litigation.
How can you best avoid conflicts?
By communicating well, clearly and in a timely manner.
What are the conflict avoidance processes?
Good Management Good project management Good client management Good constructor management good design team management
Clear contract documentation
Good payment practice
Good record keeping
Regular reporting proactivity.
What is an ombudsmen?
An ombudsman is someone who investigates complaints about companies or organisations.
What are the processes required to avoid conflicts?
- Good management
- Clear contract documentation
- Good client management
- Good contractor management
- Good payment practices
- Record keeping
- Regular reporting