M - Conflict Avoidance Flashcards
(15 cards)
How to avoid conflict
- Clearly state in tender / contract docs what required by parties
- Effective communication
- Put everything in writing
- Follow company procedures
- Follow RICS professional standards and practice information
If conflict occures, how to deal with initially
- Raise issues with parties
- Try to deal with communication / negotiation
- Face to face meetings
What could indicate success of final account negotiations
- All parties happy
- Cost agreed in clients budget
- Solved in timely manner
Cause of most disputes
- Unclear drawings or spec
- Unclear scope of service
- Under pressure / Poor decision making
- Insufficient detail
Why is conflict avoidance important
- Breakdown of relationships and trust
- Delays
- Additional cost
Considerations prior to selecting a dispute route
- Scale of dispute
- Complextity of issue
- Timescales
- Cost
- Impact reputation
What is dispute resolution
Processes that can be used to resolve conflict, dispute or claim
What is TCC
Technology and Construction Court
* Hanldes disputes in surveying, engineering and buildings
* Doesnt handle cases below £250k unless good reason
What is Mediation
- Independent third party
- Encourages coming together
- Does not award winning party
- Non binding
What is Concilliation
- Third party facilitating role
- Suggestion solutions to reach agreement
What is Adjudication
Developed to resolve disputes quicker than Arbitration / Litigation
Provides fast working solution so works can continue
- Statutory form of dispute resolution
- Relies on independent adjudicator
- They consider claims of both parties
- Binding decision (can be appealed through Arbitration / Litigation)
Timescales of Adjudication
- Referring party serves notice of Adjudication (Notice incs details)
- Appoint Adjudicator - in 7 days of notice
- Serve Referral notice - in same 7 days
- Responding party to sevre their Response - 7 days of Referral notice
- Adjudicator to reach decision within 28 days of Referral notice (can be 42)
Adjudication +/-
Pros
* Efficiency and Speed
* Generally less expensive than Arb / Litg
* More flexible, less formal
* Parties select adjudicator
Cons
* Limited jurisdiction
* No guaranteed settlement - Either party can go court
* No recoverable fees
* Short prep time
What is Arbitration and +/-
- Essentially a lawsuit without court
- Parties agree
- Legally binding
Pros
* Private
* Faster than Litg
* Parties agree on Arbitrator
* Award can be enforced by judgement of court
Cons
* Parties bear costs
* Expensive if complicated
* Limited appeal rights
What is Litigation and +/-
Formal - takes place in court
Non time sensitive
Nature, complexity and value dictates which court
Makes binding decision
Pros
* Public - transparent
* Judges can compel parties to act in timeframes
* Defined rights of appeal in cases where errors made
Cons
* Public
* Lengthy
* Costly
