Flashcards in The contribution of some of the following to dispute avoidance: Deck (8)
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1
What is risk management?
Putting in place the right strategies to mitigate, transfer, avoid or accept risks
2
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
3
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
4
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
5
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
6
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'
7
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
8
