Conflict avoidance, Management And Dispute Resolution

Question 1

Give 3 examples of ADR

Answer 1

1. Mediation
2. Adjudication
3. Arbitration

Question 2

What are the benefits of alternative dispute resolution

Answer 2

1. Less costly
2. Keeps the dispute private
3. Quicker decisions
4. Clauses within most contracts for ADR

Question 3

What are the benefits of mediation?

Answer 3

1. Independent neutral party to assist to get an agreement
2. Less costly
3. Maintains relationship
4. Faster than dispute
5. Mediation solves 35% of construction disputes that go to court

Question 4

What are the benefits of Adjudication?

Answer 4

1. Introduced by Construction Act giving most construction contracts the right to adjudicate at any time
2. RICS are widely recognised adjudicator giving their expertise
3. Less costly
4. Efficient decision in 28 days

Question 5

What are the benefits of Arbitration?

Answer 5

1. More formal arbitration process
2. Legally binding
3. Must use an arbitrator commonly RICS or chartered institute of Arbitrators
4. Private dispute (outside of courts)

Question 6

How can you avoid disputes?

Answer 6

1. Good management and communication (raising concerns or issues early)
2. Clear contract documentation and records
3. Partnering or alliancing
4. KPIs
5. Good payment practice
6. Good construction and design management

Question 7

How does the NEC contract promote collaboration and avoid disputes?

Answer 7

1. By raising early warnings
2. Actively dealing with cost and time compensation events that are assessed regularly throughout the project
3. Option C and D target cost contracts with pain/gain share
4. Overriding principle of collaboration stated within contract

Question 8

What are the different theories and techniques of negotiation?

Answer 8

1. Perception (understanding the other parties goals)
2. Keeping a check on emotions
3. Clear communication
4. Preparation
5. Having the right people in the room