Dispute Process Flashcards
What is a dispute?
A dispute can be a disagreement between two or more parties over matters such as time, money, defects, liability or criticality of cash flow.
What are the key causes of disputes?
Contract not clear
Change incorrectly captured
Industry understanding - “ways of doing things”
Technical language differences
Keen to succeed time - time and individual drivers
How can disputes be avoided?
Clear agreement at the start
Ensure no contradictions
Capture all information through the contract
Good communication
Positive relationships
Early negotiation
What are the 7 different types of dispute settlement?
ADR - Alternative dispute resolution (sitting down and having a good old chin wag over a cuppa)
Mediation
Adjudication
Arbitration
Dispute resolution board
Expert Determination
Litigation
What is involved in adjudication and why is it so popular?
Adjudication enables work to continue and can be used in any type of dispute.
28 day period
The adjudicator is an industry expert
Relatively cheap compared to litigation
Courts can enforce payments
What is arbitration?
Standard form contracts JCT/ICE Can become legal trail - litigation Not construction specific More formal process Length+Costly Decision is legally binding Settlement is often long after works
What is expert determination?
Impartial expert third party Bound by his or her decision Parties choose who expert is Quick, informal, confidential Inexpensive compared to other processes
Describe what is typically involved in litigation.
Litigation is action taken in court Thorough, impartial and consistent Ease of enforcement Public process Not conducive to win/win
What are some typical costs for dispute resolution?
Adjudication can average up to £100k+
Litigation and arbitration can go up to 30% of contract value
Adjudicators charge up to £575/hr
Total costs of multi-party litigation cases can exceed the sum in dispute
