Dealing With Conflict

Question 1

What are common causes of conflict?

Answer 1

Money: unpaid rent, incorrect billing, outstanding invoices.
Delays: slow responses, lack of engagement, construction delays.
Defects: structural issues, snagging problems.
Professional negligence and differing objectives.
Emotional factors, personality clashes, historic context.

Question 2

What techniques help avoid conflict?

Answer 2

• Clear client briefings and robust documentation.
• Early warning signs: breakdown in communication, late payments.
• Risk management: identify and mitigate potential disputes.
• Partnering and alliancing: mutual goals and cooperation.

Question 3

What are the main ADR methods?

Answer 3

Mediation: Facilitated by a neutral third party, helps parties reach a voluntary, confidential settlement. Can be facilitative or evaluative.
Conciliation: Similar to mediation but includes the conciliator’s opinion on the dispute.
Adjudication: Statutory process under Housing Grants, Construction and Regeneration Act 1996. Interim binding decision within 28–42 days. Preserves cash flow.
Arbitration: Governed by Arbitration Act 1996. Formal, private process with legally binding award. Used in rent reviews and construction disputes.
Expert Determination: Technical expert appointed to resolve disputes. May be binding or non-binding. Expert may be liable for negligence.

Question 4

What is the RICS Dispute Resolution Service (DRS)?

Answer 4

Largest ADR provider in property disputes.
Services include rent reviews, lease renewals, adjudications, mediations, CAP and facilitating Calderbank offers.
Supports Professional Arbitration on Court Terms (PACT).

Question 5

What is Fife Council’s complaints procedure?

Answer 5

Stage 1 – Frontline Resolution: Quick response within 5 working days. On-the-spot apology and resolution if possible.
Stage 2 – Investigation: For unresolved or complex complaints. Acknowledgement within 3 days, full response within 20 days.
If dissatisfied, escalate to Scottish Public Services Ombudsman (SPSO).
SPSO cannot review unresolved complaints, old events, or matters in court.

Question 6

What Is CAP?

Answer 6

Conflict Avoidance Process

CAP is a non-adversarial, collaborative process designed to:

Resolve disagreements early and informally
Avoid costly and time-consuming litigation or formal dispute resolution
Maintain good working relationships between parties

It can be:

Written into contracts as a dispute avoidance clause
Used ad hoc by mutual agreement when issues arise

Question 7

How does CAP work?

Answer 7

A CAP Panel of 1 or 3 professionals is appointed by RICS.
The panel reviews the issue and engages with both parties.
They produce a CAP Report with practical recommendations to resolve the matter.
The report is non-binding, meaning parties retain control over the outcome.

Quicker and cheaper than adjudication, arbitration, or litigation
Helps nip issues in the bud
Provides impartial risk analysis
Encourages collaboration and transparency
Pay-as-you-go – only used when needed

Question 8

What Is a Calderbank Offer?

Answer 8

RICS Dispute Resolution Service (DRS) recognises Calderbank offers as part of alternative dispute resolution (ADR) strategies.

A Calderbank offer is a private and confidential settlement offer made by one party to another during a dispute. It is:

Genuine and capable of acceptance
Not disclosed to the tribunal or arbitrator until after a decision is made on the substantive dispute
Used to influence how costs are awarded after the decision

If the final award is less favourable than the Calderbank offer, the refusing party may be ordered to pay most or all costs.

They may be used in valuation disputes, including Non-Domestic Rating appeals to the Local Taxation Chamber or Upper Tribunal for Scotland.
Particularly relevant where parties seek to settle before formal determination, preserving relationships and managing costs.

Question 9

What is the difference between adjudication and arbitration?

Answer 9

Adjudication is fast, interim, and common in construction disputes, while arbitration is slower, more formal, and produces a final, binding award enforceable like a court judgment.