What is a conflict?
A conflict is a situation where two or more parties have differing interests, objectives or views that cannot easily be reconciled
When do disputes arise in your role?
• When trying to balance my clients interests and objectives with those of tenants. • Negotiations • Rent reviews • Property management related matters
What can you do if negotiations break down?
It depends on the type of negotiations. • First I would assess why the negotiations have broken down and what my clients fall back position is, this may give room to give in the negotiation • If this still doesn’t change anything, I would report back to my client for further instructions. Following their instruction I would explore alterative options such as: ○ Explore alternative parties ○ Consider ADR methods
What is a conflict of interest?
Where a member of firm’s independence and impartiality is threatened due to the existence of a conflict between two parties
What do the RICS Rules of Conduct say about avoiding conflicts of interest?
Rule 1 - members and firms must be honest, act with integrity and comply with their professional obligations including obligations to RICS Rule 5 - members and firms must act in the public interest, take responsibility for their acts and act to prevent harm and maintain public confidence in the profession.
Give examples of ways that conflict can be avoided.
• Clear, concise, careful drafting of a contract • Managing all parties’ expectations • Understand clients objectives at the outset, sign terms of business/engagement
Why is good management important in avoiding conflict?
Helps mitigate conflicts by having good processes, tools and skills in place
What are the benefits of clear contract documentation?
• Reduces chances of dispute • Everyone is aware of their obligations
Why is good project or instruction management important?
• It keeps parties informed of what is going on • Helps keeps parties accountable
How can good client management reduce conflict?
• Setting clear expectations through Terms of Engagement • Maintaining regular and transparent communication • Managing expectations realistically • Documenting advice to avoid misunderstandings
Give examples of good payment practices.
• Pay on or before the due date • Invoice with realistic timescales for payment
How can good record keeping avoid conflict?
• It reduces the chances of misunderstanding • Also provides for good audit trails to prove statements of fact
How do reporting proactivity reduce conflict?
• Ensures that parties are kept up to speeds with progress / updates • Allows for feedback and adjustments
What are the three pillars of dispute resolution?
• Negotiation • Mediation • Adjudication
Give examples of negotiation in terms of dispute resolution.
• Lease terms • Rent Reviews • Lease renewals
Give examples of mediation in terms of dispute resolution.
• Arbitrator/independent expert for rent reviews • PACT for protected lease renewals • Mediator for dilapidations disputes
How do mediation and conciliation differ globally?
• Mediation - mediator facilitates discussions but does not suggest outcomes • Conciliation - conciliator may actively propose solutions
What is Alternative Dispute Resolution (ADR)?
Dispute resolution processes and techniques that all outside the scope of court litigation
Why might you prefer to pursue ADR rather than litigation through the Courts?
• Quicker • Informal • Greater opportunity for negotiation • Lower costs • Better decision making - made by experts not a judge • Can be confidential
Can you tell me about any other types of ADR?
• Arbitration • Independent Expert • PACT • Mediation
What governs dispute resolution during insolvency or bankruptcy proceedings?
Insolvency Act 1986
Explain what a Calderbank letter is?
• It is a written offer to settle on a dispute on a without prejudice save as to costs basis. • Must be a genuine offer • Gives a time limit (21 days)
What exams do surveyors need to pass to become an Arbitrator?
Qualify and pass the Chartered Institute for Arbitrators Exams
What form of Arbitration is used for Lease Renewal Disputes?
PACT
