Taking the pledge can help firms stand out.

Graham Findlay, Our Regional Director discusses the benefits of the Conflict Avoidance Pledge

Conflict can be an unavoidable part of business, especially when the stakes are as high as they get in the construction industry.

Millions of pounds are being lost as a result of corporate disputes, with a 2021 Arcadis study putting the cost of the average construction industry conflict at over ￡27m[1], not to mention hard-won reputations and relationships.

This is incredibly damaging to all parties, and the industry in general. More needs to be done to pre-emptively avoid conflict, and this is why Thomas & Adamson are advocates of the Royal Institution of Chartered Surveyors’ Conflict Avoidance Pledge (CAP).

The RICS scheme is designed to help prevent disputes and help companies resolve disagreements at as early a stage as possible, with most conflicts arising from simple differences of opinion or minor misunderstandings which can rapidly escalate. As one of only five silver-verified partners, meaning that we have taken formal steps to incorporate policies which allow us to avoid and manage disputes, we have already seen the benefits that the pledge can bring.

What does this mean in practice?

There can be any number of causes of disputes. Some of the most frequent are errors or omissions in the management of contracts, contradictory priorities of contracting parties or a failure by one of the parties involved to understand or comply with detailed contractual obligations.

So, how does CAP help your business, and ultimately your clients, by avoiding these disputes? The first step is working together with all stakeholders to identify potential disputes. This can be done by working closely with partners to understand any pressure points that may arise during a project. This can be anything from having a frank discussion about deadlines to gaining a better appreciation of the manufacturing costs of elements on a project. By understanding these pressure points at an early stage, you can then work collaboratively to avoid any issues that may appear during the process.

Unfortunately, while avoidance is always preferred, some disputes are unavoidable. At this point, it is important that both parties remain level-headed in how they deal with the issues. Rather than immediately involving lawyers, which can be costly and time-consuming for both parties, the CAP suggests appointing an independent panel of experts by RICS in an effort to help both parties resolve the issue. . In this process, a review is undertaken by the panel using their experience and technical expertise, with the aim being to provide non-binding recommendations to be agreed on by both parties.

Integrating these practices into your everyday work can provide peace of mind for all involved in projects.

What are the other benefits to signing up to the pledge?

While the main benefits of signing up to the Conflict Avoidance Pledge include less disputes and less wasted time and money, there are some more subtle advantages that ?should not be dismissed.

Businesses that have signed up for the pledge have shown they are willing to work collaboratively with others for the benefit of clients. At Thomas & Adamson, we have found our sliver CAP verification has made us an attractive partner, both for clients and suppliers.

As we all know the market is tougher than ever, and clients are now considering ESG when making decisions. By incorporating the principles of CAP, your business will stand out from the crowd as being renowned for its good relationships with partners.

And ultimately, relationships are the linchpin of our industry.

For more information on the above please contact Graham Findlay, Regional Director on [email protected]

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