Don’t resolve disputes, avoid them, says Martin Burns
Transport for London (TfL) and the Royal Institution of Chartered Surveyors (RICS) have developed a practical conflict avoidance and early intervention procedure for construction and engineering contracts, which is designed to save money and preserve commercial relationships.
Disputes on major construction and engineering projects can cause immense harm to long term relations between employers and contractors.
Resolving a dispute is more difficult when a difference of opinion between an employer and contractor is not addressed early. In such circumstances parties frequently descend into the trenches. Their views become rigid and, in many cases, parties become so manifestly inflexible that meaningful dialogue is almost impossible.
Traditional methods for resolving disputes can be very expensive and inordinately slow. The commercial and human consequences of litigation, arbitration and adjudication can often be intolerable. This is usually the case even when parties manage to settle their differences before a judgment; award or decision has been given on a dispute.
Avoidance v resolution
In respect of major infrastructure projects, particularly those which
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