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It is universally agreed that the best form of dispute resolution is dispute
prevention, however very little effort is expended in this area. Dispute
prevention by the use of a Dispute Resolution Adviser (DRA) who can
implement and facilitate the beneficial concepts of both partnering and ADR has
proven benefits.
A Dispute Resolution Adviser can operate as an individual or as a member of a
Dispute Resolution Board (DRB). The main function of the Dispute Resolution
Adviser is to promote co-operation between the parties, to assist them avoid
disputes and if disputes do arise to resolve them before the dispute can become
entrenched. The Dispute Resolution Adviser operates as part educator, part
auditor and part mediator.
Ideally a Dispute Resolution Adviser should be brought in at the beginning of a
contract and continue to participate regularly for the duration of the contract. The
Dispute Resolution Adviser independently monitors all aspects of the contract
and meets at regular intervals with representatives of the Principal, the
Superintendent, the Contractor and major Subcontractors, taking note of potential
problems as they arise.
The Dispute Resolution Adviser is independent of all parties to the contract and
generally their professional fees are shared equally between the Principal and Prime
Contractor.
All parties are required to advise the Dispute Resolution Adviser of any
potential problems or disputes. This requirement to involve an independent third party
at an early stage is quite often sufficient in itself to stop disputes from developing.
The referral of a potential dispute to a Dispute Resolution Adviser means that
unsustainable arguments may be identified objectively at an early stage.
The involvement of a Dispute Resolution Adviser on a contract will not change
the legal relationship between the parties, nor relieve either party from any of the
terms of the contract. The Dispute Resolution Adviser does not replace the
Superintendent nor carry-out any of the duties of the Superintendent.
Contracts & Purchasing Services Pty Ltd can provide a Dispute Resolution Adviser
for your contract to operate individually, as a member of the contract's
Dispute Resolution Board or as Chairman or member of the contract's
Project Control Group. Our Principal
Consultant, John R
Burke, is a Graded Arbitrator and a Registered
Mediator with the Institute of Arbitrators & Mediators Australia.
We would welcome the opportunity of expanding on any of the points mentioned
above.