Conflict avoidance, management & dispute resolution Flashcards
Common causes of disputes
Poor performance of parties
Uncontrolled change.
Complex contractual relationships / inadequate tender and contract documentation.
Inability or reluctance to pay.
Inappropriate procurement
Unclear clarity of roles and responsibilities
Unknown ground conditions
Risk Management
Identifying the causes of disputes to minimize or avoid.
Risk register - probability and impact
Early Warning Systems
NEC contracts makes provision for early warning procedures, both parties must give notice of anything that may delay the works or increase costs as soon as they are aware.
As a project manager look to identify early symptoms of problems;
-Breakdown of communication
-Information flow
-Late payment
Partnering Techniques
Common agreement/commitment by stakeholders to pursue mutual goals & objectives. Helping identify potential risks and sources of conflict at the outset.
How to avoid conflict
- Clear contract documents
- Managing all parties expectations and roles
- Good record keeping, minutes
What is ADR
Alternative Dispute Resolution
Processes & techniques that fall outside the scope of court litigation
Benefits of ADR
- Cheaper and quicker than litigation
- Confidential process
- Quality of decision maker as can be a surveyor and not a judge
What is litigation
Process of parties taking legal action through the courts
-Public process
What is Mediation
Confidential process where a neutral party facilitates negotiations
What is Conciliation
Neutral party facilitates negotiations and is also required to express their opinion on the dispute
What is Adjudication
Adjudicator uses own knowledge to reach a legally binding decision in a contractual process
What is Arbitration
3rd party Arbitrator who has relevant knowledge makes a legally binding decision on the dispute
What is a Dispute Resolution Board
A board of individuals (experts in the field) that resolve disputes. Appointed before disputes arise, typically at the time of the contract. Involved throughout the whole project.
What is Independent expert determination
An independent expert in the subject matter is appointed by the parties to resolve the matter and reach a final binding determination
What are the 3 main processes available in resolving disputes
1- Negotiation - Solve problem between themselves
2- Mediation - 3rd party intervention to assist
3- Adjudicative Process - 3rd party determines outcome
