Dispute resolution is dead, long live dispute avoidance, says Martin Burns
More and more government and industry bodies are seeking to reduce legal costs associated with resolving disputes by using a range of early intervention techniques. These are designed to help contracting parties avoid disputes by managing commercial relationships through difficult situations, and preventing minor issues escalating into full blown disputes.
Early intervention
Arbitration, adjudication, and other traditional forms of dispute resolution are usually employed only after legal costs have been racked up, commercial relationships have been damaged and party positions have become entrenched. Early intervention techniques, on the other hand, can help to manage conflicts and nip disputes in the bud. This can mean the difference between good business driven by good business relationships, and no business at all.
The reality to commercial relationships is that conflict is always possible. Early intervention addresses this by involving contracting parties in establishing, at an early stage, how their disagreements will be handled. The objective is to focus minds on how potential problems will be resolved, and doing it early enough to avoid the
