Dispute Management FAQ's

 
  1. What is Dispute Management?
  2. Does that mean I have to go to court?
  3. What is ADR?
  4. I have been asked to take part in a mediation to settle my construction dispute.  Is this a good idea?
  5. What is Adjudication?
  6. What is Arbitration?
  7. What is Expert Determination?
 
 
  • What is Dispute Management?
  • It is inevitable that in a competitive construction market disputes and conflicts will occur. Surveyors are well placed to manage such conflict and advise parties on efficient ways to resolve disputes. In our view, dispute management is about objectivity and providing clear and concise advice. We believe that this leads to a fast and cost effective resolution to conflict.
 
  • Does that mean I have to go to court?
  • It might but most conflicts end before that. There are many steps we can take at various points in a project which can help avoid the dispute from arising in the first place or limit the effect it has on your business. For example, a great many conflicts have their roots in the contract itself. We can review the terms of your proposed contract, report on problem areas and suggest amendments. We can also give you our opinion on where you stand as well as act as expert witness or represent you in ADR.
 
  • What is ADR?
  • ADR stands for Alternative Dispute Resolution. Taking a dispute to court should be a last resort for parties involved in a dispute. As such, the courts now actively encourage conflicting parties to enter into some form of voluntary procedure to settle a construction dispute before entering into formal litigation. ADR procedures usually take the form of mediation, conciliation and adjudication.
 
  • I have been asked to take part in a mediation to settle my construction dispute.  Is this a good idea?
  • Mediation is now actively encouraged by the courts and parties who refuse to enter into such a process may be exposed to costs should a dispute proceed to litigation. In terms of the process, mediation is often seen as a structured negotiation which is led by a neutral person. The process is initially non-binding but can become binding if a settlement is reached. As a means of settling disputes, mediation has a high success rate.
 
  • What is Adjudication?
  • Statutory adjudication was introduced by the Housing Grants, Construction and Regeneration Act 1996 and this has transformed dispute resolution in the construction industry since implementation on 1 May 1998. The reason for this being that under the Act, construction contracts must contain provision for adjudication. Adjudication is a quick method of resolving a dispute as an appointed adjudicator must give a decision within 28 days of referral. This decision is binding until such a time as the matter may proceed to arbitration or litigation. Alternatively, the parties may agree to take the adjudicators decision as final.
 
  • What is Arbitration?
  • If a negotiated settlement of a claim is not possible it may be appropriate for a dispute to be referred to arbitration. Proceeding to litigation is an expensive, public and time consuming activity and arbitration offers an alternative whereby the dispute remains private and parties can exercise some control over the third party decision maker (the arbitrator). The arbitration process is governed by the Arbitration Act 1996 and once the arbitrator gives his decision it can be enforced much in the same way as a court judgment.
 
  • What is Expert Determination?
  • Expert Determination is dispute resolution process in which an independent expert, in the subject matter of the dispute, is appointed by the parties to resolve the matter. The expert’s decision is again confidential and the process is usually invoked by a term in the contract which makes it legally binding on the parties.
     
 
Regulated by RICS - Royal Institute of Chartered Surveyors

For immediate assistance with all construction related matters, call The Vinden Partnership now on 0845 504 9733.