To mark Conflict Avoidance Week, the Contract Group of the Conflict Avoidance Coalition hosted a roundtable under Chatham House Rules, Chaired by the Small Business Comissioner, to consider how supply chains can collectively establish a more responsible approach to contracting.
The first part of the discussion examined the causes and consequences of the routine amendmentof standard form contracts. The conversation focused on the confusion, inefficiency, and serious insurability concerns created bythe current “normal practice.
The discussion moved on to how we can escape a cycle of behaviours that are demonstrably damaging to the construction industry. The need to simplify and streamline the contracting process was discussed. The merits of standard form contracts and standardising our approach tocontract management needs to be emphasised. Costs associated not only with set-up andadministration, but also with the rising expense of adjudication, featured heavily in the debate —as did the ultimate human cost resulting from the commercial tension created through contracts.
Suggestions for how improvements were linked to technology (particularly Artificial Intelligence toimprove accessibility of information) and a renewed examination of key regulatory areas includingthe duties and responsibilities defined in the Building Safety Act, areas of the Construction Actthat contribute to conflict and have distorted the role of adjudication, and the Late Payment Regulations.
The role of the Conflict Avoidance Process (CAP) and Pledge, along with more standardisedcontract processes, was noted. These were also linked to the need for clearer communicationaround the consequences of negative behaviours (particularly in relation to insurability andcompliance) and the importance of promoting better practices to clients and their advisors. It is ultimately the clients and advisors who, whether wittingly or otherwise, often set in motion asequence of events through their approach to contract management.
As a next step, the Group intends to work with World Commerce and Contracting (World CC) on using data to help communicate and demonstrate the benefits of a simpler approach. This will be supported by a pilots ubcontract developed around the 500-word methodology.
To access the full write-up and to view the eight recommendations that were drawn from the discussion, click here.