Planning and preparation helps to avoid business disputes
How many times have we looked back on a difficult issue and wondered ‘could I have dealt with that better’? Whilst hindsight is said to confer 20-20 vision, it does so after the fact and, therefore, does not offer any insights when faced with a potential or real dispute. Dispute avoidance and management processes, on the other hand, have the ability to highlight the potential for future problems or flashpoints before they occur. They can also be adapted to suit any client, industry or dispute. Whilst, for the purposes of this article, we are focussing on some of the ways to avoid a potential dispute within the construction industry, the same processes can also be used for by other sectors:
Plan - When people are working together it is important to produce a plan which encompasses expectations, responsibilities, timelines and resources. To be successful
the entire team needs to ‘buy-in’ to the plan. This ‘buy-in’ will help to encourage a culture of responsibility, giving the team the confidence to forecast, analyse and manage problems in a timely fashion.
Open Communication - It is essential to understand each client's objectives expectations and to put clear and effective channels of communication in place. A key feature of many disputes is the breakdown in communication among the parties. Clear and unambiguous communication enables the early identification and management of potential risks/conflict throughout the project which will facilitate strong, positive relationships among stakeholders.
Strong management - it is important to understand and maintain an overview of aspects of the project including the contract and the programme of works even when other project managers, contract administrators and supervisors are involved in the project. Regular, objective assessment of progress against plan will need to be made; proactive and timely management of issues/delays that arise during the project should be addressed at the earliest opportunity, even if you do not have day to day line management responsibility for them; and, if the actions of individuals not directly related to the project are threatening to undermine the plan, steps need to be taken to ensure that the integrity of the plan is maintained.
Transparent contract documentation - Many disputes arise from ambiguities within contract documentation. Open and transparent documentation will ensure the details of the project are clearly stated with any issues or risks highlighted. By identifying the main areas of risk/ conflict in advance, strategies can be put in place to mitigate and/or avoid them during the project.
Clear payment structures - Once payment provisions have been agreed it is vital that payments are made promptly. Failure to meet payment obligations can cause animosity, disputes and future trust issues.
Partnering & proactive project management - Proactively managing time, costs and risk associated with the project are instrumental to the success of a project. It is important to build co-operation between the project stakeholders in order to engage team working, problem solving and the overall success of the project.
Keeping account - Accurate records are required to effectively monitor the progress of a project. Records should also be available in the event of challenges relating to any aspects of the project. Appropriate records can undermine both the potential for future disputes and the development of a blame culture.
Administration - it is easy to remember that regular monitoring of costs, progress updates and quality assurance will lead to the success of any project. Maintaining
minutes of meetings, weekly reports and team briefings are recommended. As importantly, issues that are causing delays, any increases in cost or quality problems should be raised and managed as soon as is practically viable.
All of these concepts are relevant to any successful project in any sector. The early identification of issues/delays enables proactive action to be taken which in course avoids the potential for future disputes.
How many times have we looked back on a difficult issue and wondered ‘could I have dealt with that better’? Whilst hindsight is said to confer 20-20 vision, it does so after the fact and, therefore, does not offer any insights when faced with a potential or real dispute. Dispute avoidance and management processes, on the other hand, have the ability to highlight the potential for future problems or flashpoints before they occur. They can also be adapted to suit any client, industry or dispute. Whilst, for the purposes of this article, we are focussing on some of the ways to avoid a potential dispute within the construction industry, the same processes can also be used for by other sectors:
Plan - When people are working together it is important to produce a plan which encompasses expectations, responsibilities, timelines and resources. To be successful
the entire team needs to ‘buy-in’ to the plan. This ‘buy-in’ will help to encourage a culture of responsibility, giving the team the confidence to forecast, analyse and manage problems in a timely fashion.
Open Communication - It is essential to understand each client's objectives expectations and to put clear and effective channels of communication in place. A key feature of many disputes is the breakdown in communication among the parties. Clear and unambiguous communication enables the early identification and management of potential risks/conflict throughout the project which will facilitate strong, positive relationships among stakeholders.
Strong management - it is important to understand and maintain an overview of aspects of the project including the contract and the programme of works even when other project managers, contract administrators and supervisors are involved in the project. Regular, objective assessment of progress against plan will need to be made; proactive and timely management of issues/delays that arise during the project should be addressed at the earliest opportunity, even if you do not have day to day line management responsibility for them; and, if the actions of individuals not directly related to the project are threatening to undermine the plan, steps need to be taken to ensure that the integrity of the plan is maintained.
Transparent contract documentation - Many disputes arise from ambiguities within contract documentation. Open and transparent documentation will ensure the details of the project are clearly stated with any issues or risks highlighted. By identifying the main areas of risk/ conflict in advance, strategies can be put in place to mitigate and/or avoid them during the project.
Clear payment structures - Once payment provisions have been agreed it is vital that payments are made promptly. Failure to meet payment obligations can cause animosity, disputes and future trust issues.
Partnering & proactive project management - Proactively managing time, costs and risk associated with the project are instrumental to the success of a project. It is important to build co-operation between the project stakeholders in order to engage team working, problem solving and the overall success of the project.
Keeping account - Accurate records are required to effectively monitor the progress of a project. Records should also be available in the event of challenges relating to any aspects of the project. Appropriate records can undermine both the potential for future disputes and the development of a blame culture.
Administration - it is easy to remember that regular monitoring of costs, progress updates and quality assurance will lead to the success of any project. Maintaining
minutes of meetings, weekly reports and team briefings are recommended. As importantly, issues that are causing delays, any increases in cost or quality problems should be raised and managed as soon as is practically viable.
All of these concepts are relevant to any successful project in any sector. The early identification of issues/delays enables proactive action to be taken which in course avoids the potential for future disputes.
Notes to Editor:
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Prime Dispute vision and mission: Read More*
Training courses provided by Prime Dispute: View More
Monthly e-Industry newsletter available via our LinkedIn page: LinkedIn
Prime Dispute provides four levels of membership designations for our profession. Come and join our community: Join Now
*please use the links to share the message