Plea for industry to adopt updated conflict-avoidance processes

A key figure has called for an “industry-wide adoption” of conflict-avoidance processes (CAPs) after the Royal Institution of Chartered Surveyors (RICS) introduced fresh measures to help construction firms avoid court battles.

Len Bunton, chair of the Conflict Avoidance Coalition (CAC), hailed updated guidance from the RICS and contracts provider NEC as “a huge step forward”.

RICS has published 16 rules for using its CAP. This includes how panels can be appointed, how they should operate and what powers they have.

CAPs are designed to tackle early issues with projects before lawyers get involved, bills rocket and working relationships break down.

Bunton said: “If something happens on a project and endless meetings to resolve it reach an impasse, the parties can go to the RICS to get a CAP professional appointed.

“That professional or panel would find out what each party’s problems are and come up with a set of recommendations.”

He said work with one client saw these suggestions accepted on 18 out of 19 cases raised, often within one or two weeks.

“I hope we will see industry-wide adoption and significant reduction in the number of construction disputes and the money that is costing through litigation or adjudication,” he said.

“The industry has spent hundreds of millions of pounds in consultant and lawyer fees. That money should be spent on buildings.”

The NEC said a model clause created by the government in 2022 for public sector contracts had been updated.

Its guidance note outlined a procedure to be used in an NEC4 contract to resolve disagreements at an early stage by using a conflict avoidance panel.

New CAP clauses can be used in any of the main forms of contract or subcontract.

Tim Tapper, director for contract services at construction consultancy Turner & Townsend, said last year that cost uncertainty meant the age of fixed-price contracts was over.

“We’re in a volatile and challenging market, and really what that says to me is you can’t just keep doing the same thing again – you can’t just keep turning the wheel,” he said.

“[With] the traditional approach, you’ll generally find that everyone blames each other – that’s no real way to go forward. It’s not sustainable.”

More than 600 organisations including Network Rail, Skanska and Morgan Sindall have signed the CAC’s pledge to facilitate early resolution of potential disputes.