Conflict Avoidance Dispute Resolution Procedures

Question 1

How are your regular commercial meetings structured?

Answer 1

• No set structure
• Formal or informal

Question 2

Can you give me an example of an issue that has arisen on one of your projects, and how you used dispute resolution to resolve it?

Answer 2

Bristol - Dispute arose over differing opinions between the client and the contractor over the reasoning why the commercial project was delivered late. Nomiated persons negotiated to resolve the dispute and find common ground.

Question 3

Why did you choose negotiation, did you consider other options?

Answer 3

• Contract guidance states other forms of dispute resolution suh as; Mediation should be considered after attempts to negotiate have failed
• The business relationship was also considered

Question 4

Do you believe negotiation was the best procedure, and why?

Answer 4

Yes, because the outcome was commercially positive for both parties but also the business relatoionship remained intact.

Question 5

What information does it ask for in regards to settlement of disputes in standard contract forms?

Answer 5

• What nominating body appoints the Adjudicator/Arbitrator
• If Arbitration applies/ does not apply
• Who the Adjudicator is

Question 6

What section is Settlement of disputes found in - in the JCT?

Answer 6

It depends on which standard form. Standard building contract is section 9 whereas minor works contract it is section 7

Question 7

What is Adjudication?

Answer 7

• Statutory procedure
• Relatively simple and efficient
• Independent third-party considers claim of both parties and comes to a decision
• Either party can decide to submit notice of Adjudication at any time
• Adjudicator is appointed within 7-days of refferal
• Decision made within 28 days from appointment
• Extension of a further 14-days may be granted to reach a decision.

Question 8

What is Arbitration?

Answer 8

• Private procedure governed by the Arbitration Act 1996
• Both parties in dispute agree to be bound by the decision of an independent third party.
• Genuine dispute must have occurred with an award capable of enforcement

Question 9

What is the difference between Arbitration and litigation?

Answer 9

• Litigation is public governed by the civil procedure rules
• Arbitration is a private procedure
• Litigation is conducted in court
• Litigation can deal with multi-party disputes

Question 10

Can a binding decision be overturned, if ‘YES’, on what grounds?

Answer 10

• Yes, however appeals are rare. A court is unlikely to consider appeal against an arbitrators award.
• An adjudicators decision is also final; however, the entire dispute can be reheard by referring the matter to litigation or arbitration.

Question 11

What is mediation?

Answer 11

• Mediation is a alternative dispute resolution process
• an independant third-party assists in facilitating negotiations between parties

Question 12

What is the difference between dispute & conflict?

Answer 12

• Dispute is short term disagreement that can be settled
• Conflict is long term and deep rooted disagreement that is seen as non-negotiable
• Conflict is a crystalised dispute