Level 1 Flashcards
(17 cards)
What can you do if negotiations break down?
-Encourage mediation or ADR to resolve disputes outside of court.
-Document everything to protect against claims.
-Refer to the contract for dispute resolution clauses.
-Issue formal notices if required by contract terms.
-Seek legal or expert advice for complex issues.
-Step back or involve others to reduce tension.
-Escalate the issue internally or to authorities if needed.
-Advise on contract termination as a last resort.
What do the RICS Rules of Conduct say about avoiding conflicts of interest?
1.Act with integrity – RICS members and regulated firms must identify and manage conflicts of interest to ensure they act honestly, fairly, and professionally.
2.Avoid situations where personal or professional interests conflict – If a conflict cannot be avoided, it must be fully disclosed, and informed consent must be obtained from all affected parties.
3.Put clients’ interests first – But only if doing so doesn’t compromise the member’s duty to act with integrity, or their legal/professional obligations.
5.Withdraw from the instruction if a conflict can’t be managed – If no fair or ethical solution is possible, the RICS member or firm must cease involvement.
Give examples of ways that conflict can be avoided.
-Define a clear scope and specifications to prevent misunderstandings.
-Use a robust contract with agreed terms and dispute resolution mechanisms.
-Maintain effective communication with regular meetings and written documentation.
-Provide accurate cost estimates and manage the budget carefully.
-Ensure thorough design and planning to identify risks early.
-Clarify roles and responsibilities to avoid confusion.
-Implement a change management process to handle variations properly.
-Plan for contingencies with time and budget allowances for unexpected issues.
How can good client management reduce conflict?
- Set Clear Expectations from the Start
Establish clear goals and scope early on. Ensure both parties understand what is expected, including timelines, costs, and deliverables.
Document everything to avoid misunderstandings and misinterpretations. - Maintain Open and Transparent Communication
Regularly update clients on progress, potential delays, or issues.
Encourage clients to voice concerns early, addressing them before they escalate. - Involve the Client in Key Decisions
Engage the client in major decisions, especially changes or variations to the original plan.
This ensures they feel included and valued, reducing the likelihood of disagreements later on.
Give examples of good payment practices.
- Clear Payment Terms in Contracts
Set clear payment schedules (e.g., milestone payments, weekly or monthly invoices). - Prompt and Timely Payments
Pay invoices promptly according to the agreed terms. This helps maintain trust and goodwill. - Accurate and Transparent Invoicing
Ensure invoices are detailed, showing the work completed, materials used, and any agreed-upon changes.
What are the three pillars of dispute resolution?
*Adjudication resolve the dispute quickly, fairly and cost-effectively. The Construction Act outlines a 28-day procedure for adjudication, although this can be extended for another 14 days with the agreement of the party that started the procedure, and even longer if both parties agre
*Mediation is a facilitated, non-binding process with a neutral third party.
*Arbitration is a formal, binding decision made by a neutral third party.
What is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution (ADR) refers to a range of processes used to resolve disputes outside of traditional court proceedings. ADR is designed to be more flexible, quicker, and less expensive than litigation. It typically involves the use of neutral third parties to help parties come to a resolution without the need for formal legal action.
Adjudication:
-Direct discussions between the parties involved to resolve the dispute, without any third party involvement.
Mediation:
-A neutral third party (mediator) helps facilitate discussions between the parties and assists them in finding a mutually agreeable solution. The mediator does not impose a decision.
Arbitration:
A more formal ADR process where a neutral third party (arbitrator) listens to both sides and then makes a binding decision.
What would you do if you identified a perceived/actual conflict of interest?
- Disclose It Immediately
Inform all relevant parties (e.g. client, employer, stakeholders) as soon as the potential or actual conflict is identified.
Be transparent and provide clear details about the nature of the conflict (e.g. personal connection, financial interest, prior involvement). - Assess the Impact
Determine whether the conflict is actual, potential, or perceived.
Evaluate the risk to impartiality, professional judgement, and trust in the process. - Refer to Company Policy and RICS Guidance
Consult internal policies and RICS Professional Standards and Guidance (PSG) on conflicts of interest.
Where necessary, seek advice from a line manager, compliance officer, or RICS ethics helpline. - Take Action to Manage or Remove the Conflict
Depending on the situation:
Step aside from the project or part of it.
Put up an information barrier (e.g. in larger firms, to separate teams).
Reassign tasks to a colleague with no conflict.
Withdraw from the instruction altogether if the conflict can’t be fairly managed.
Can you tell me about any RICS guidance relating to conflicts of interest?
- RICS Rules of Conduct (2021)
Effective from February 2022, these rules apply to both members and regulated firms.
Key Points:
Rule 3: Conflicts of Interest - RICS Professional Statement: Conflicts of Interest (2017)
This is a mandatory professional statement (especially for real estate-related disciplines) and sets out detailed obligations and examples. - RICS Global Professional and Ethical Standards
Integrity – Being honest and straightforward in all professional dealings.
Transparency – Disclosing conflicts and acting openly.
What is the difference between an arbitrator and an independent expert?
Arbitrator
Role: A neutral third party appointed to resolve disputes through a formal legal process called arbitration.
Independent Expert
Role: A technical or subject-matter specialist appointed to give a decision based on their own expertise and judgment — not through a legal hearing.
What governs dispute resolution during insolvency or bankruptcy proceedings?
In the UK, the Insolvency Act 1986 is the primary legislation governing both company and individual insolvency.
What is a Dispute Review or Recommendation Board (DRB)?
A Dispute Board or DRB (Dispute Review Board) is a standing group of typically, three independent and impartial persons selected by the contracting parties. The Dispute Board is involved with the project or venture from inception through to completion and has ‘hands on’ knowledge of every aspect of the process. The Dispute Board knows the parties, knows their goals and objectives, and can act efficiently to prevent a dispute from arising or, if one does, to give a decision in some cases.
What is the role of RICS in dispute resolution?
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RICS, through its Dispute Resolution Service (DRS), plays a crucial role in resolving disputes within the built environment by offering a range of alternative dispute resolution (ADR) services. These services include mediation, arbitration, adjudication, and expert determination, providing efficient and cost-effective solutions to help parties resolve conflicts outside of court
What RICS guidance are you aware of relating to dispute resolution or roles in dispute resolution?
-Rules of Conduct require regulated firms to publish complaints-handling procedures including an Alternative Dispute Resolution (ADR) mechanism.
-Mandatory Complaints Handling Procedure (CHP) - RICS mandates that regulated firms have a CHP, including an ADR mechanism. This ensures clients have access to dispute resolution processes.
-Conflict Avoidance and Dispute Resolution Guide - provides a framework for early problem identification, non-adversarial resolution, and avoidance of formal dispute resolution.
RICS Dispute Resolution Service (DRS) - service offers a range of ADR methods, including mediation, adjudication, and arbitration, for resolving disputes in the built environment.
-Dispute Advisor and Party Representative Roles - RICS offers training and resources to support individuals in the roles of dispute advisors and party representative
-Conflicts of Interest -RICS provides guidance on identifying and managing conflicts of interest for members acting as dispute resolvers.
What are the differences between conflict avoidance and dispute resolution?
- Conflict avoidance focuses on preventing disputes from arising by proactively addressing potential issues, while dispute resolution is about resolving conflicts that have already occurred. Conflict avoidance involves identifying and managing risks early on, often through proactive measures like risk analysis and partnering.
Conflict avoidance focuses on preventing disputes from arising by proactively addressing potential issues, while dispute resolution is about resolving conflicts that have already occurred. Conflict avoidance involves identifying and managing risks early on, often through proactive measures like risk analysis and partnering.
Explain the RICS conflict avoidance pledge to me.
We commit to working proactively to avoid conflict and to facilitate early resolution of potential disputes. We commit to developing our capability in the early identification of potential disputes and in the use of conflict avoidance measures
What RICS guidance relates to conflicts of interest for dispute resolvers?
Conflicts of interest for members acting as dispute resolvers
