Short note: Conflict and dispute management

Conflict is a disagreement among individuals or groups because of different interests, goals or values. If it is not settled and becomes a formal claim, it is a dispute. In construction, the causes include delayed payment, variations, defective work, unclear drawings and late completion.

Management steps

• Prevention: clear contract documents, early communication, record keeping, regular meetings.
• Negotiation: direct talks between the parties.
• Mediation or conciliation: a neutral third person helps to find a solution.
• Adjudication (dispute board): an expert gives a quick decision during the project.
• Arbitration: a binding award under the Arbitration Act 2055.
• Litigation: court action as the last resort.

The best approach is a win-win solution that protects the project and the relationship, using the cheapest and fastest method first.