Third party opinion and fixed-fee mediation procedures
Contents |
[edit] Introduction
Construction contracts usually provide for disputes to be dealt with by agreed dispute resolution procedures involving mediation, adjudication and arbitration. Often a combination of all three.
On 6 November 2014, The RIBA launched two new dispute resolution schemes intended as alternatives to more formal processes:
- Third party opinion.
- Fixed-fee mediation.
These are fast, low-cost schemes intended for the resolution of low-level disputes that might otherwise cause delays to projects.
[edit] Third party opinion
The third party opinion procedure is intended for the resolution of technical issues or issues such as valuation. It involves the selection of an independent professional to give an opinion on the dispute and to make a recommendation for settlement. It is appropriate where the parties genuinely wish to settle the dispute and is entered into by consent, it is not part of the contract terms.
Submissions are limited to the two sides of A4 form each party with a maximum of 10 sides of supporting documents. A 5 hour time limit is applied. If a settlement is reached, the parties sign a binding agreement. The procedure may be abandoned at any time.
[edit] Fixed-fee mediation
The fixed-fee mediation procedure is intended for low-value disputes (up to £15,000) that the parties have a genuine wish to settle, and which can be resolved quickly. Mediators are selected from a list maintained by the RIBA to assist negotiations between the parties. If a settlement cannot be reached by negotiation, the mediator may suggest a settlement, but this is only binding if the parties wish it to be. If a settlement is reached, the parties sign a binding agreement. Mediation may be abandoned at any time.
The parties each set out the nature of the dispute on a single side of a A4. Mediation is conducted by telephone for no more than an hour. There can be one or two hours of preparation depending on the amount in dispute.
[edit] Related articles on Designing Buildings Wiki
- Adjudication.
- Alternative dispute resolution legislation.
- Arbitration.
- Breach of contract.
- Causes of construction disputes.
- Conciliation.
- Contract claims.
- Dispute resolution boards.
- Expert witness.
- Housing Grants, Construction and Regeneration Act.
- Litigation.
- Mediation.
- Med-adjudication.
- Med-arbitration.
- RIBA.
- Scheme for Construction Contracts.
Featured articles and news
Not buildings. Happy holiday from DB.
Future Homes Standard: Industry calls for more ambition
As the Government FHS consultation finally closes.
Improving government projects with data and AI
Enabling better outcomes, efficient modern delivery and influential leadership on government projects.
BSRIA Living Laboratory Innovation Challenge
Final days for submission, closing March 29.
Windows, their frames, forms, factors and functions.
The hidden subtleties of U-Value calculations
Different contexts and what to include as variables.
A brief run down with related articles.
Electrical sector calls for safer public EV charge points
Serious concerns about electrical safety in the public domain.
Building Blocks manifesto presented to parliament
Architects Declare call in for support of five critical policies.
The four elements of project management with APM
Analysis, expectations, collaborative communication and partnerships.
City of London launches Heritage Building Retrofit Toolkit
Empowering owners to initiate necessary adaptations.
Guidance on RAAC in listed buildings
Published by Purcell, endorsed by IHBC, SPAB and C20.
Learning from the past.
Reluctance to hire people with criminal convictions revealed
Employing People with Criminal Convictions Report.
Tackling unconscious bias; Women's History Month
Personal reflections, as the last week of March approaches.