SPONSORED EDITORIAL
Conflict avoidance: A new era for construction? By Rebecca Barrass, Associate, MacRoberts LLP
Disputes in the construction industry are, unfortunately, commonplace and the impact of the COVID-19 pandemic has brought construction disputes and their financial cost into sharp focus. In order to try to avoid a potential tidal
wave of damaging disputes, the Royal Institute of Chartered Surveyors (RICS) has introduced the Conflict Avoidance Pledge. Tose who sign the pledge effectively indicate that they are committed to working collaboratively and using early intervention techniques to try to resolve differences between parties before they escalate into full blown disputes. As Len Bunton has previously outlined
in CABLEtalk, RICS also offers a Conflict Avoidance Process (CAP). It operates as a contractual mechanism aimed at avoiding prolonged disputes. A CAP procedure and
timetable can be incorporated into parties’ contracts or entered into as a separate agreement. Common features of a CAP are: ●Parties appoint a CAP member in the event of a potential dispute ●Te member meets the parties to discuss the dispute and agree the process ●Tis may involve further meetings, submission of written explanations, site visits, or submission of settlement offers ●Te member will aim to complete the process within 28 days and offer recommendations. Te recommendations are not binding.
However, they are likely to give parties invaluable insight into their own and the other party’s position. Parties can also
agree to implement the recommendations in part or agree a settlement which modifies their terms. Taking a dispute to a formal resolution process is often time consuming and expensive. With a CAP the only outlay is the member fees. Even if it only results in part of a dispute being settled, it can mean huge savings. For years, the construction industry has been plagued by lengthy disputes and the CAP provides a potential tool to avoid them. It won’t suit all
circumstances, but having more tools
available for resolving disputes can only be a positive development. ● For further advice, please contact Gavin Thomson on 0131 248 2162 or Rebecca Barrass on 0141 303 1164
38 CABLEtalk FEBRUARY/MARCH 2021
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