Conflict Avoidance

Question 1

How do you manage conflict avoidance

Answer 1

Maintain good documentation
Proactive management
Clear terms and conditions - especially regarding payment mechanisms and termination
Record keeping

Question 2

Dispute resolution techniques

Answer 2

Negotiation (parties resolve disputes themselves):
- Low cost
- Fast
- Non-binding

Mediation (indepente neutral third party)
- Formal
- Can be binding

Adjudication (3rd party adjudicator)
- issue notice of dispute
- Adjudicator appointed in 7 days
- 28 days to make decision
can be overturned by arbitration or litigation

Arbitration (3rd party arbitrator or panel)
- contract between disputing parties must contain written agreement to arbitrate
- bdingin and enforcable through courts

Litigation (courts)
- Legal action in court
- not confidential
Lengthy

Question 3

Alternative dispute resolution

Answer 3

Mediation, Conciliation, Negotiation. Should be used before formal dispute resolution methods.

Question 4

What to consider when selecting form of dispute resolution

Answer 4

Cost
Timescales
Impact on business relations

Question 5

Arbitration vs litigation

Answer 5

Cost: Arbitration is cheaper than litigation. Ligitation requires more legal fees.

Confidentiality: Litigation isn’t private, Arbitration is

Time: Arbitration is faster than Litigation

Question 6

How did the Construction Act impact adjudication and disputes in construction contracts?

Answer 6

Required building contract to contain provisions for adjudication

Second iteration of Construction act allowed for adjudication on verbal contracts