Dispute Resolution Flashcards
What are possible causes for disputes within construction projects?
- Mistakes in dealing
- Mistakes in specification
- Misinterpretation of contracts
- Contractual obligation misunderstandings
- Payment issues
- Extension of time issues
- Adjoining owner issues
- Quality and progress issues
Which parties do disputes commonly occur between?
- Contractor & Subcontractor
- Contractor & Employer
- Employer & Consultant
- Employer & Third party
What are the remedies to dispute?
- Damages
- An injunction
- Specific performance
- Quantum meruit
What are the main factors determining the choice of dispute resolution?
- Cost
- Time
- Requirement for confidentiality
- Whether a binding ruling is wanted
- Risk
- Maintaining/building of a relationship
Name the 5 main methods of dispute resolution
Non-adversarial
- Negotiation
- Mediation
Adversarial
- Adjudication
- Arbitration
- Litigation
What roles do dispute boards perform?
- Monitoring of a project
- Reviewing of documents & site visits
- Advice in avoiding disputes
- Maintaining cross-party communication
- Suggest resolutions at early stages of a dispute
What measures can promote dispute avoidance?
- Good communication from the outset of a project
- Pre-start meetings and regular review of progress
- Project team collaboration
- Early warning notices
- Complete and clear written brief from the outset
Which ARB Code of Conduct refers to the handling of disputes?
ARB Code, Standard 10: ‘Deal with disputes or complaints appropriately’
- In a courteous and prompt manner.
- Architects should have a written procedure, which can also be given to the client. It will also include the name of the architect who will respond to the complaint.
In what time frame should an architect respond to a complaint?
- Acknowledgement within 10 working days of its receipt
- Response within 30 days of its receipt, addressing the issues raised within the initial complaint.
- Where applicable, alternative dispute resolution methods should be promoted.
What is the key piece of legislation regarding Litigation?
Civil Procedure Rules 1999
What are the advantages and disadvantages of Litigation?
Advantages:
- Legally binding decision by judge
- Complex cases will have time to be reviewed in detail
Disadvantages:
- Can be a very costly process
- Can take between 12-18 months to get to a decision
- Proceedings and decision will be in the public domain
Which piece of legislation is key to Arbitration?
The Arbitration Act 1996
What are the advantages of Arbitration?
- Private and confidential, unlike litigation
- The award is final and binding
- The tribunal determining the dispute is chosen by the parties
- Can result in cost savings due to the consensual nature of the process
- Parties can agree on location, timing, representation and the individual arbitrator
What are the disadvantages of Arbitration?
- Can be more expensive than court proceedings
- It is a longer process than adjudication
- Less likely than litigation to be bound by legal precedent
- Enforcement has to be done by making an application to the court after a decision is made
- Does not have the effective means to deal with disputes involving more than 2 parties
- There are limited rights of appeal
What are the advantages of Adjudication?
- It is a relatively quick process
(Typically 28 days from the appointment of an adjudicator and serving of referral. This can be longer if agreed by parties.) - Usually less expensive than arbitration and litigation
- Private and confidential process
