Conflict avoidance, management and dispute resolution procedures

Question 1

What are the three types of conflicts of interest?

Answer 1

• Party Conflict
• Confidential Information Conflict
• Own Interest Conflict

Question 2

What RICS document would you refer to for conflicts of interest?

Answer 2

RICS Professional Standard - Conflicts of interest, Global, 1st edition, March 2017

Question 3

What is a conflict of interest?

Answer 3

A situation in which the duty of an RICS member (working independently or within a non- regulated firm or within a regulated firm) or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another.

Question 4

What is informed consent?

Answer 4

Giving Informed Consent is the way in which a party who might be affected adversely by a Conflict of Interest acknowledges the existence of that risk, but instructs a regulated firm or individual RICS member to proceed despite that risk.

Question 5

What is Carter Jonas’ conflict of interest policy?

Answer 5

Mandatory: check Business Central, email to local office(s)

Basic Plus: Connect, DMS, Terrier

Question 6

What is a conflict?

Answer 6

A conflict refers to a situation where there is a clash between the professional duties or interests of a surveyor and their obligations to clients, employers, or other stakeholders.

Question 7

What do the RICS Rules of Conduct say about avoiding conflicts of interest?

Answer 7

The RICS Rules of Conduct emphasize the importance of avoiding conflicts of interest to uphold professional integrity and protect clients’ interests. Specifically, they outline obligations for members to identify, assess, and manage conflicts of interest appropriately.

Members must disclose any conflicts of interest to relevant parties and take necessary actions to mitigate risks and maintain objectivity in their professional activities.

Question 8

What are the three pillars of dispute resolution?

Answer 8

Negotiation
Mediation
Adjudication/Arbitration/Litigation

Question 9

Give an example of negotiation

Answer 9

Two parties involved in a project negotiate to resolve a disagreement over access to land. They discuss the issues, propose solutions, and reach a mutually acceptable agreement without involving a third party.

Question 10

Give an example of mediation

Answer 10

In a compensation dispute between a landowner and a client regarding a claim, both parties agree to bring in a neutral third party, a mediator, to help facilitate communication and guide them towards a resolution. Helping find common ground.

Question 11

Give an example of adjudication

Answer 11

In a dispute over defective workmanship on a construction project, the client initiates adjudication proceedings as outlined in the construction contract. An independent adjudicator is appointed to review the evidence presented by both parties and make a binding decision to resolve the dispute.

Question 12

What two choices are there when the complaints handling procedure has failed to produce a satisfactory outcome?

Answer 12

1. Litigation/Court following the Civil Procedure Rules
2. ADR

Question 13

What are the advantages of ADR?

Answer 13

Speed
Informality
Greater opportunity for negotiation
Cost
Quality of decision making (outcome or award can be made by a surveyor rather than a judge).
Confidentiality

Question 14

What is mediation?

Answer 14

Use of a neutral mediator who facilitates discussions to explore whether a solution can be found.

Question 15

What basis is mediation usually conduced on?

Answer 15

Without prejudice

Question 16

Can the mediator impose a resolution?

Answer 16

No, they do not have a decision making authority.

Question 17

What does arbitration involve?

Answer 17

An arbitrator with specialist knowledge is appointed in a quasi-judicial role. He can order a hearing or consider written representations. He then makes a decision based on the evidence.

He cannot be sued in negligence but his decision can be overruled by the Court of Appeal on a point of law only.

Question 18

What is the advantage of arbitration?

Answer 18

Fast, cost effective and confidential solution.

Question 19

How can a surveyor act as an arbitrator?

Answer 19

Must pass the Chartered Institute of Arbitrators exams.

Question 20

Are the parties bound by an arbitrator’s decision?

Answer 20

Yes

Question 21

What is Independent Expert Determination?

Answer 21

An expert with knowledge of the subject matter is appointed by the two parties (or President of the RICS in case of some disputes e.g. rent reviews).

The expert receives evidence and investigates, and can also use his own evidence or opinion.

Both parties are bound by the decision.

Question 22

What is adjudication?

Answer 22

The adjudicator acts to determine the dispute in a contractual process.

Commonly used in construction payment disputes.

Adjudicator uses own knowledge and jurisdiction afforded by relevant law to reach a legally binding decision.

Strict timescale - 28 days for decision

Question 23

What is the RICS Dispute Resolution Service?

Answer 23

A provider of alternative dispute resolution (ADR) services in land, property and construction.