Dispute Resolution (Section 9)

Question 1

Name some forms of Dispute Resolution?

Answer 1

1. ) Negotiation
2. ) Mediation
3. ) Adjudication
4. ) Arbitration
5. ) Litigation

Question 2

What is dispute resolution?

Answer 2

Actions to resolve contractual disagreements.

Question 3

What is mediation?

Answer 3

The parties agree on an independent, third-party neutral system to facilitate discussions between them, with the goal of reaching a settlement. The power to settle remains with the parties, but the process is led by the mediator.

Question 4

What is negotiation?

Answer 4

The process whereby the parties work out between them how to resolve any issues that have arisen. Power to settle the dispute rests with the parties.

Question 5

What is adjudication?

Answer 5

Adjudication is a contractual or statutory procedure for swift interim dispute resolution. It is provided by a third party adjudicator selected by the parties in dispute.

Question 6

What is in a Notice of Adjudication?

Answer 6

Sent to the other party and the adjudicator, stating:

• A description of the nature of the dispute and the parties involved;
• Details of where and when the dispute arose;
• The nature of the remedy being sought;
• Names and addresses of the parties to the contract

Question 7

What are the timeframes for adjudication?

Answer 7

1. ) Following service of the Notice of Adjudication the adjudicator must be appointed within 7 days.
2. ) The referral notice (document that sets out in detail the case of the party who is referring the dispute to adjudication (and any documentation incl expert reports to support the claim)) must be served within 7 days of the Notice of Adjudication.
3. ) The adjudicator’s decision must be made within 28 days of service of the referral notice. Note that the responding party’s response must be served within the 28 day period. This 28 day timescale may be extended with the consent of the adjudicator.
4. ) As per the HGCRA 1996, the adjudicator can correct errors under the “slip rule”. An adjudicator has the ability to correct an accidental error or emission provided they do so within a reasonable time.

Question 8

What if a building contract does not contain a provision for adjudication?

Answer 8

If parties do not agree to an adjudication procedure, then one is imposed by statute. If the parties do not agree procedural rules which comply with HGCRA 1996 then the act imposes rules set out in the Scheme for Construction Contracts.

Question 9

What is arbitration?

Answer 9

Arbitration is a process, by which formal disputes can be resolved in a binding manner by a tribunal of the parties’ own choosing, in private.

Question 10

What is the difference between arbitration and litigation?

Answer 10

The main difference is Arbitration = private, Litigation = public

Question 11

How can conflict in construction projects be avoided?

Answer 11

Good management, having clear contract documentation, partnering, good client management, good contractor management, good payment practice, regular reporting, risk register.

Question 12

What is litigation?

Answer 12

Litigation means to resort to legal action to settle a matter. Generally the Technology & Construction Court (TCC) will deal with construction disputes.