The contribution of some of the following to dispute avoidance: Flashcards Preview

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What is risk management?

Putting in place the right strategies to mitigate, transfer, avoid or accept risks


What are the THREE key components / steps of risk management?

1. Identification - identify any potential risks including probability of the risk happening and possible impacts. Earlier identification = better as proactive approach.

2. Allocation - allocate risk to party best equipped to deal with it, and which risks should be retained, transferred or shared.

3. Management - managing risk to ensure best possible outcome for all contractual parties


If a claim is made, what details should be include in a claim notice?

Details of event giving rise to any entitlement to time and / or cost

Relevant clause(s)

Detailed records to support any additional time and / or costs claimed


What are early warning systems?

Identifying potential problems early to manage and resolve them proactively

The contract should include obligations for parties to identify and communicate problems early, and commit to achieving quick and amicable resolution to mutual benefit of all those involved


What is an NEC early warning system?

All NEC contracts require the supplier and the contractor / PM to formally notify each other of early warning of certain types of event


What does the NEC Early Warning System entail?

Early warning notice (EWN) must be issued as soon as a party becomes aware of 'any matter' which could affect total of prices / could delay completion / impair performance of the works in use

EW matters should be entered on the risk register

EWNs should not be issued for purpose of allocating responsibility / liability or could be failing to act in the NEC clause 10, 'spirit of mutual trust and co-operation'


What are some partnering techniques and how can they help prevent disputes?

Closer co-operation between project stakeholders can improve teamwork

Stakeholder management plan

Inception meeting with stakeholders to build rapport

Partnering workshops and regular periodic meetings:
- provide parties with opportunities to communicate in a friendly and cooperative environment
- honest, open, frank communication and conflict resolution = encouraged


How can clear and robust client briefings help prevent disputes?

Manages expectations and avoids ambiguities

Clear contract documentation