24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

Improving Business Performance

Disputes Prevention & Resolution

Carmen Velasco Goi
Managing Consultant, Kingsfield Consulting International Ltd

ECIs 21st Annual Conference 2010 & Global Construction Summit 24 25 June 2010

It is a fact that conflict occurs in complex & large projects

Unmanaged conflict has greater potential to escalate into dispute

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

The management of the conflict starts before signing the contract

Even though the parties may have the best intentions of cooperating

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

The parties usually pay little attention to the drafting of the dispute resolution clause
But ultimately the dispute will be resolved accordingly

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

Your dispute resolution clause should be clear, simple and complete

It has to be drafted with three objectives in mind
What you want to achieve

What you want to avoid What you want to protect

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

Conflict management requires a great deal of strategy, commercial / contractual & legal awareness
It cannot be left to improvisation

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

If the dispute cannot be avoided it has to be managed from the moment it arises
Companies have to put appropriate resources in place to proactively deal with the dispute

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

If everything else fails you will have to escalate the dispute

Typically either to litigation or to arbitration

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

In the E&C international industry arbitration is the default method for dispute resolution
A good arbitration clause could be your best support provided you have managed the whole process

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

If you have managed the dispute effectively statistics are on your side
Research* shows that 92% of the arbitration disputes are resolved at some stage through the arbitration proceedings
Settlement of Arbitration Cases
8%

11%

25%
Settled before award Settled after award (award by consent) Voluntary compliance of award Recognition and enforcement of award Settlement followed by litigation

7%

49%

*PWC and Queen Marys University International Arbitration: Corporate attitudes and practices 2008 24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

The key to success is dispute management from inception to award / settlement

Prepare; do not rely on your luck!

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

24 25 June 2010 21st ECI Annual Conference & Global Construction Summit in Paris

Commercial Project Solutions People & Team Development KINGSFIELD CONSULTING INTERNATIONAL

Rosemount House, Rosemount Avenue

West Byfleet, Surrey, KT14 6LB t: +44 1932 340140

e: kci@kingsfieldgroup.com
www.kingsfieldgroup.com