Len Bunton, Chair of the Conflict Avoidance Coalition (CAC), tells us about their role and goals, and we explore why several FIS members have committed to and are adhering to the CAC’s Pledge and Process.
The financial cost of disputes in the construction industry is measured in billions of pounds. Conflict can cause immeasurable harm to business relationships and brand reputations. The CAC Process is all about early intervention to stop issues on construction projects from escalating into construction disputes.
The CAC was founded to drive a sea-change in the UK construction industry, with the ambitious goal of transforming how people and businesses handle contractual disputes.
The coalition boasts around 60 members/organisations representing businesses across the supply chain. Our efforts to promote collaborative working and improve dispute management have significantly impacted the UK construction industry and are also making waves internationally, explained Len.
Len said: “Central to our mission is the Conflict Avoidance Pledge and Process, which has so far been embraced by over 500 businesses, including Morgan Sindall, Network Rail, Siemens, Indeglås, Kier, and Transport for London, covering the entire construction process.
“The Pledge has even been woven into UK Government policy, requiring parties involved in public works programs to “comply or explain” their adherence to its principles (see the Construction Playbook1).”
The Pledge
Len explained passionately that by taking the Pledge, businesses commit to believing in collaborative working and employing early intervention techniques throughout the supply chain to resolve differences of opinion before they escalate into disputes. They recognise the importance of embedding conflict avoidance mechanisms into projects with the aim of identifying, controlling, and managing potential conflicts, while preventing the need for formal, adversarial dispute resolution procedures. They also commit their resources to integrating these practices into their projects.
Additionally, they work proactively to avoid conflicts and facilitate the early resolution of potential disputes. This involves developing their capability in the early identification of potential disputes and the use of conflict avoidance measures. They will promote the value of collaborative working to prevent issues from escalating into disputes and work with industry partners to identify, promote, and utilise conflict avoidance mechanisms.
Why sign up to the Pledge?
Len commented that taking the Pledge signals to clients and suppliers that the business is reliable and trustworthy. Maintaining strong business relationships and addressing issues promptly and amicably are fundamental aspects of their daily commercial operations. They are fully committed to delivering value for money and working collaboratively to ensure projects are completed on time, within budget, and to the highest standards. FIS (Finishes and Interiors Sector) has signed the Pledge, and many of its members are now doing so. The message is simple “Sign today and don’t delay!”
Len concluded by saying: “It is very clear that momentum is growing across the UK, and members are encouraged to implement the Conflict Avoidance Process and Pledge in their day-to-day business activities, and to promote its use throughout their own supply chains.”
To show your commitment to the industry and sign up for the Pledge visit: https://rics-mkt-prod2-m.adobe-campaign.com/lp/LP14
Conflict Avoidance Conference – Promoting co-operation in construction
Date: 2 October 2024 / Location: Westminster, London
The CAC is delighted to invite you to attend its inaugural Conflict Avoidance Conference. This is a must-attend event for all professionals working in the UK construction industry. You will gain practical strategies and insights into minimising conflict and managing disputes that arise on construction projects. For more information email capledge@rics.org
Iain McAlpine
Commercial Director, Indeglas
A simple way to describe the meaning of the Pledge
“Although it’s very telling that our industry needs reminding that conflict avoidance is a worthy mode of operation, unfortunately, disputes, inefficiency, and poor outcomes are part of the current climate,” said Iain McAlpine, Commercial Director at Indeglås.
Iain explained that Len’s introduction to the Pledge resonated with us because it encapsulates our natural attitudes and instincts. For Indeglås, the key component of the Pledge is its straightforward principles of trust, integrity, and a collective desire to collaboratively deliver projects on time, on budget, and to exceptional standards.
He said: “The Pledge is a simple reminder of how to conduct ourselves during the inevitable ups and downs of building complicated structures. It’s a reminder that obstacles should be overcome together, not push us apart. Being a signatory makes our leaders accountable internally and externally, sets an example to the team, and inspires good behaviours. For me, that’s key to making us a good company to work with.”
Iain continued by saying: “An industry stalwart recently told me that what impressed him most about his relationship with Indeglås was that we walked towards each other when issues arose rather than walking away. In my opinion, that is the simplest way of describing what the Pledge means, and it’s a real source of pride that our adherence to it is confirmed by someone we respect highly.”
www.indeglas.co.uk
Anthony Armitage
General Counsel, Thirdway
Providing a platform for early intervention and a cooperative ethos
Anthony Armitage, General Counsel at Thirdway explained that their interest in the Pledge emerged following the publication of an article in the Solicitors Journal on ‘JCT Building Contracts: What’s the Point of Amendments?’ He said: “I argued for using unamended forms of standard building contracts to reduce delays, minimise costs, save time, balance risk fairly, and promote efficient operation and collaborative working in construction and engineering projects. The question was addressed primarily to lawyers, as the schedules of amendments nearly always originate from them.
“Negotiating amendments is time-consuming and can be adversarial. The resulting contract is often poorly understood by those who administer it, and interpreting the amended terms becomes more difficult. The response to the article was swift and supportive from trade bodies, providers of template contracts, contractors, adjudicators, and project managers, though comments from lawyers were notably absent.”
Anthony continued by saying: “The Pledge offered the ideal platform for Thirdway to advance the messages of early intervention and a cooperative ethos beyond just better contracting. It was an easy decision for the business to sign up. We now encourage our clients and suppliers to join us in this commitment to align our interests on each project. We recommend incorporating the Pledge sample conflict avoidance clause into our building contracts as standard. It truly is a case of ‘what’s not to like’.
“A longer-term goal is to educate the entire sector on the benefits and encourage employers to question their lawyers more thoroughly about the real motivations behind routinely issuing increasingly complex schedules of amendments. There is no evidence or research I have seen to support their use. Reasons given for amendments include ‘it is too extreme not to have them,’ ‘whether you like it or not, our client will not accept an unamended contract,’ and ‘I cannot recommend my client signs unless you accept all my amendments.’ Changing this attitude will be a challenge, but with the Pledge’s help, Thirdway is ready for the task.”
Nick Morris
Owner and Director, Nutone Interiors
A positive step to resolving contractual challenges
Nick Morris, Owner and Director of Nutone Interiors, explained that he has worked in the sector since the 1990s. However, he took a break from the industry for nearly a decade, returning about five years ago. Nick said: “One of the main reasons I took a break from the industry was the increasingly adversarial nature of day-to-day contracting.
“During my absence, I watched the industry with interest, and it seemed that more tolerance and acceptance were being adopted by wider society. I was convinced that upon my return to the sector, much of this would have permeated through. I am glad to say some of it has, but to my dismay, this is not the case regarding the contractual side.
“It was important to me to bring my business under the umbrella of the Pledge. Far too many times I have seen very minor site disputes worth no more than a few hundred pounds escalate rapidly to potential legal action, costing all parties involved ridiculous amounts of time, money, and, above all, stress when all of this could and should be wholly avoidable. I speak from personal experience.”
Nick commented that the industry is crying out for a better way to deal with such matters and believes that those signing up for the Pledge are making a positive move in the right direction, something he urges all invested parties to consider. He also believes that the Pledge will take on added importance, especially if the current trend of placing more and more design responsibilities onto subcontractors continues to gain pace, which he fears will ultimately lead to more potential disputes.
Nick concluded by saying: “I hope that the CAC and Pledge will lead to the strengthening of legislation in this area; however, it is a positive and welcome start.”
