ion: A judicial process in which the disputing parties arrange for a neutral third party to decide the dispute for them. It is conducted under the provisions of the Arbitration Act 1996. The arbitration process can range from informal to formal, and the parties have some choice about the process. However it is still a legal process the parties present their cases and the arbitrator will make a decision on the issues. The decision is legally binding, with only a few rights of appeal against it.
Informal to formal, and the parties have some choice about the process
- Private
- More economic than litigation Can be binding or non-binding agreements, therefore if not binding parties could take their issue back to court, which could add to the cost of litigation to that of the prior arbitration.
- Shorter Process
- With multiple parties, multiple arbitrators, and complicated legal disputes this could actually slow the process.
- Still a chance a relationship between partied can continue.
- A legal process where the parties present their cases and the arbitrator will make a decision.
- The decision is legally binding, and basically final with few rights of appeal against it so can resolve so project can progress.
Litigation: When party or parties against each other take steps that may lead to a court trial and ultimately a resolution of the matter. Sometimes this could be the last option but could allow costs to be reimbursed and could allow for a successful completion if handled quickly (such as an out of court agreement between parties).
- High Risk, poor publicity
- Expensive – legal fees and time.
- Can affect relationships
- Can affect reputation considerably even if you win
Recommendations: The important factor with dispute resolution is how the Project team (Client, Service provider, contractor and sub-contractors) are integrated at the start of this project. By this I mean the right procurement in the form of an Alliance agreement based on collaboration, shared resources and goals, and culture managed from the leadership down, to understand and trust in the team’s decisions and outcomes. Adjudication has particular relevance in the construction industry commonly used within NEC3 type contracts, and would be a relevant starting point.
Contracts can provide agreed dispute resolution procedures involving mediation, adjudication and arbitration and potentially a combination of all three with obligations to negotiate in good faith, potentially managed by dispute resolution boards, with partnering meetings to discuss obligations set out in the contract.
Strategies for Collaboration and Partnering (LO5)
So why collaborate, and what can it do for all parties involved? The main need comes from restrictive budgets and the need to share resources, be it staff, contractors or local authority/ private sector combined buying power, but also to become more efficient a particular government driver. A good starting point is required from the outset in the procurement model, and may need to address cultural differences between parties, and how this can be embedded into a workable relationship.
With this project we could develop partnerships which many organisations such as Client, University of Brighton, Brighton and Hove City Council, Local Communities, Local interest groups (Cycle or e
