Feature follow up: Dispute resolution processes

By Uwe Putlitz, edited by Megan O’Connor

Plumbing Africa’s September feature looked at the most important paperwork that every plumber should have in place before starting the works – namely contracts, terms and conditions, and quotes. In this second instalment of the Plumbing Africa feature follow-up series for September, we look at dispute resolution – contracts and paperwork are often the first line of defence when disagreements arise, setting out what was agreed, who was responsible and how issues should be addressed. But when the paperwork does not resolve the disagreement and the parties cannot reach a solution themselves, formal dispute-resolution processes may provide the way forward.

Pressfoto | Magnific.com

Where a dispute cannot be resolved between the parties, the SfCC provides a number of alternative dispute-resolution options: Mediation, Adjudication, Arbitration and Litigation.

Mediation

Mediation is easily accessible at any time to achieve a result in short time at a low cost.

The mediator, with access to all relevant (confidential) project information of the parties may be best placed to make a non-binding expert determination if requested by both parties for their consideration.

Adjudication

Adjudication can occur at any time when a dispute is notified, following the process in the SfCC used and the applicable adjudication rules within a finite period. The adjudicator, on appointment, after his/her fee is agreed, with the period allowed in the applicable contract and/or rules deals with typical adjudication issues including late, partial or no payments, claims for an extension of time and/or, or quality of workmanship. Project participants must not allow disputes to drag to the end of project when access to evidence may no longer be accessible (for example, built in or painted over) depriving the contractor of the benefit of the award of a successful time/money claim.

The adjudicator’s decision becomes binding if not disputed by either party within the period stipulated in the contract and/or the rules, or if disputed, by an arbitrator’s award, or by a court.

The adjudicator does not have judicial immunity.

Arbitration

Arbitration, is a more rigid procedure and takes longer to implement, typically involving the legal professions often supported by expert witnesses – only completed after completion of the project.

The arbitrator’s decision is final and binding unless challenged by a court judgment.

The arbitrator has judicial immunity.

Litigation

Litigation is a vastly more expensive and time-consuming process – the parties must consider if the nature of the dispute merits embarking on such procedure.

Dealing with disputes is always time consuming and stressful. Working as a team and dealing with issues promptly as they occur is fair to all and likely to improve morale of the participants leading to an improved final product without destroying inter-personal relationships.