Conflict Avoidance, Management and Dispute Resolution

Question 1

What is dispute resolution?

Answer 1

Actions and process taken to resolve contracutal disagreement between parties.

Question 2

What are the main pillars of dispute resolution?

Answer 2

Negotiation, Mediation and Adjudication

Question 3

What are the consideration when selecting form of dispute resolution

Answer 3

Time, cost, impact on business relationship and reputations

Question 4

How does dispute resolution treated in forms of contract?

Answer 4

FIDIC
- Engineer to consult both parties. Engineer will make fair determination if agreement is not reached.
- If dissatisfied, Dispute Adjudication Board takes over.
- Binding decision will be made withi timeframe. If dissatisfied, parties must attempt amicable settlement.
- Arbitration takes over otherwise with binding decision.
VOB/B
- Both parties can agree on dispute resolution procedures
- Client should register dispute, inform contractor.
- Contractor will be given opportunity to discuss with authorties.
- Authorities will issue decision within 2 months

Question 5

What is negotiation? What are the points to consider when considering negotiation?

Answer 5

• No third party involved, both parties attempt to agree and settle the dispute themselves
• Cheap, informal, flexible

Question 6

What is mediation/conciliation? What are the points to consider when considering mediation/conciliation?

Answer 6

-Mediator tries to get parties to agree their dispute
- Typically last within the day
- Parties makes decision on outcomes
- Non binding
- Cheap, Quick, Private

Question 7

What is adjudication? What are the points to consider when considering adjudication?

Answer 7

-Adjudicator expert controls process and makes decision
- 28 day process
- Documents are exchanged
- Decision is legally binding
- Relatively Quick
- Private

Question 8

What is arbitration? What are the points to consider when considering arbitration?

Answer 8

• Parties consent to arbitrate
• Arbitrator appointed
• Typically longer and more costly
• Legally Binding
• Private

Question 9

What is litigation? What are the points to consider when considering litigation?

Answer 9

• Take dispute to court
• Legally binding
  -Costly and time consuming
• Public domain

Question 10

What is expert determination? What are the points to consider when considering expert determination?

Answer 10

Similar to adjudicator but it focuses on more technical and specialized matter

Question 11

What are the two areas in support for conflict avoidance?

Answer 11

Contract documentation, Partnering