Conflict Avoidance and Dispute Resolution Flashcards
How does NEC4 deal with disputes?
Initially there is the option to escalate disputes to senior representatives meeting.
ADR in Option W clauses:
W1 - Adjudication when the Construction Act does not apply
W2 - Adjudication when the Construction Act does apply
W3 - Dispute Resolution Board when the Construction Act does not apply
What is the timescales for senior representatives meeting?
Statement of case exchanged between parties within a week. Period of up to 3 weeks to resolve using as many meetings as required. A list is produced of items agreed/not agreed and agreed items are implemented by PM/Contractor.
What is the process for adjudication?
Notice of adjudication is served by either party and an adjudicator is appointed (from organisation agreed in contract data eg RICS) within 7 days. On day 7 the referral is served on the adjudicator and the 28 day period for award is commenced. Award is delivered on day 28.
This period can be extended by a maximum of 14 days if the referring party agrees.
Slip rule allows 5 days for the adjudicator to correct any arithmetical errors in their award.
What are the three pillars of dispute resolution?
- Negotiation
- Mediation or Conciliation
- Adjudicative Process
What is the arbitration?
Dispute is submitted to arbitrator who makes binding decision on the dispute. This is private and confidential rather than in a court hearing like litigation. Both parties have to agree to go to arbitration.
What is litigation?
The process of taking a dispute to a court of law. The last stage of dispute resolution, public procedure on a court trial/hearing with a binding decision given. The decision will also outline who is to pay the costs of litigation.
What’s the difference between conciliation and mediation?
Both third party facilitation dispute resolution procedures. In conciliation the facilitator will propose solutions to the dispute, in mediation the mediator will guide parties to find a solution.
