During this post we’ll run through some practice questions and answers focussing on the Conflict Avoidance, Management & Dispute Resolution competency which is applicable to all pathways of the APC and is required up to Level 1. This means that candidates must demonstrate their awareness and basic understanding of dispute resolution procedures such as negotiation, mediation, adjudication and litigation. From my experience of helping colleagues pass their APC over the last 9 years, I compiled the following Q&A practice based on past interviews and really hope this helps candidates feel better prepared for their final assessment interview.
The following Questions & Answers are focussed on the Conflict Avoidance, Management & Dispute Resolution Competency
Question) What are the main forms of Alternative Dispute Resolution?
Answer) There are several forms of Alternative Dispute Resolution (ADR), including:-
- Mediation – This process involves a neutral third party who facilitates discussions between the disputing parties to help them reach a mutually acceptable agreement. The mediator does not impose a decision but instead guides the parties toward a resolution.
- Conciliation – Similar to mediation, conciliation involves an independent third party who assists in resolving the dispute by encouraging dialogue and offering suggestions. However, unlike a mediator, a conciliator may take a more active role in proposing solutions.
- Negotiation – This is an informal and voluntary method where the parties involved communicate directly with each other to resolve their dispute. Negotiation can be done privately or with the assistance of legal representatives and the outcome depends on mutual agreement.
Question) What are the main formal methods of dispute resolution?
Answer) Formal dispute resolution methods include:-
- Arbitration – This is a private dispute resolution process where an independent arbitrator makes a binding decision based on the evidence and arguments presented by both parties. Arbitration is often used in commercial contracts as an alternative to court proceedings.
- Litigation – This is the process of resolving disputes through the court system. It involves legal proceedings before a judge (and sometimes a jury), where each party presents its case and a legally binding judgment is issued. Litigation follows formal procedures and can be costly and time consuming.
- Adjudication – This is a statutory dispute resolution process, particularly relevant to the construction industry. An independent adjudicator is appointed to review the claims of both parties and make a binding decision within a short timeframe, typically 28 days.
Question) What factors should be considered before selecting a form of dispute resolution?
Answer) Before deciding on a method of dispute resolution, several important factors should be considered including:-
- The cost involved – The expense of resolving a dispute should be proportionate to the value of the claim. Some methods such as litigation, can be significantly more expensive than alternative options like mediation or adjudication.
- Time constraints – The timeframe in which a resolution is required may influence the choice of dispute resolution method. For instance, adjudication provides a decision within 28 days, whereas litigation can take months or even years.
- Impact on business relationships and reputation – The approach taken to resolve a dispute can affect ongoing business relationships. Mediation and negotiation are more collaborative methods that encourage cooperation, whereas litigation and arbitration can be adversarial and potentially damage relationships.
Question) What is conciliation?
Answer) Conciliation is a dispute resolution process that is similar to mediation and involves an independent third party who facilitates communication between the disputing parties to help them reach an agreement. The role of the conciliator is primarily to encourage dialogue and diplomacy, but they do not have the authority to seek evidence, call witnesses or impose a binding decision. Instead, they act as a messenger, relaying information between the parties to assist in finding a resolution.
Question) What is mediation?
Answer) Mediation is an alternative dispute resolution process in which a neutral and impartial third party, known as a mediator, facilitates discussions between the disputing parties. The mediator’s role is to encourage open communication, assist in identifying areas of agreement, and guide the parties toward a mutually acceptable solution. Unlike conciliation, mediation places a stronger emphasis on active engagement, as the mediator does more than just relay messages—they work to bring the parties together to reach a resolution. Mediation is often preferred because it promotes cooperation and preserves business relationships.
Question) What is dispute resolution?
Answer) Dispute resolution refers to the various methods and processes used to resolve disagreements between parties, particularly in contractual or legal disputes. These methods can range from informal negotiations to formal legal proceedings, with the goal of finding a fair and effective solution to the dispute.
Question) What is negotiation?
Answer) Negotiation is a process in which two or more parties communicate directly, either privately or with the assistance of representatives, to reach a mutually acceptable resolution. It is an informal method of dispute resolution that allows the parties to discuss their concerns, make concessions where necessary and agree on a settlement. Once an agreement is reached, both parties are typically bound by the terms they have negotiated.
Question) What is your most successful negotiation?
Answer) This is a subjective question that depends on the individual’s experience. A strong response should outline a real-life negotiation experience by incorporating key details such as:-
- The nature of the project – Describe the project or situation in which the negotiation took place.
- The dispute involved – Explain the issue that led to the negotiation and why resolution was necessary.
- Preparation process – Detail any steps taken before the negotiation, such as internal meetings, gathering supporting documents or developing a negotiation strategy.
- Negotiation strategy – Discuss the key points that were non-negotiable and the aspects where compromises were made. Explain how these decisions were determined.
- Outcome and impact – Describe the final resolution and how it benefited not only the immediate parties involved but also the long-term success of the project and business relationships. Highlight any collaborative approaches, such as fostering a long-term partnership.
Question) What could indicate the success of a negotiation on a final account?
Answer) The success of a negotiation regarding a final account can be measured by several factors, including:-
- Satisfaction of both parties – A successful negotiation results in both parties feeling that a fair and reasonable compromise has been achieved. Neither side should feel as though they have been unfairly disadvantaged.
- Preservation of business relationships – A positive negotiation outcome ensures that both parties maintain a professional and cooperative relationship, allowing for future collaboration.
- A partnering approach – If both parties adopt a long-term, cooperative mindset and focus on mutual benefit rather than short-term gain, this can indicate a successful negotiation.
Question) What is adjudication?
Answer) Adjudication is a statutory dispute resolution process commonly used in the construction industry within the United Kingdom. It is designed to provide a quick and cost-effective means of resolving disputes without the need for lengthy court proceedings. In adjudication, an independent adjudicator is appointed to assess the claims of both parties and issue a binding decision. Although the decision is legally binding, it can be challenged through arbitration or litigation. One of the key advantages of adjudication is its efficiency as decisions are typically made within 28 days.
Question) What enforces the requirement for a building contract to contain provisions for adjudication?
Answer) The requirement for a building contract to include provisions for adjudication is enforced by the Housing Grants, Construction and Regeneration Act, commonly referred to as the Construction Act. This legislation ensures that parties to a construction contract have the statutory right to refer disputes to adjudication.
Question) Which contracts does adjudication apply to?
Answer) Adjudication applies to all construction contracts entered into after the commencement of the Construction Act within England, Scotland, and Wales. The act covers agreements for the carrying out of construction work, design services, and other construction-related obligations.
Question) What happens if a building contract does not contain provisions for adjudication?
Answer) If a construction contract does not include specific provisions for adjudication, the statutory right to adjudication still applies as long as the contract falls under the scope of the Construction Act. In cases where the contract fails to include adequate adjudication provisions, the Scheme for Construction Contracts will automatically apply, ensuring that the parties can still resolve disputes through adjudication.
Question) Please explain your understanding of the arbitration process.
Answer) Arbitration is a private and legally binding dispute resolution process in which an independent arbitrator is appointed to review the evidence and make a decision. It differs from litigation because it allows the parties greater control over the process, including the selection of the arbitrator and the procedural rules. Arbitration requires a pre-existing agreement between the parties to refer disputes to arbitration. It is often used in commercial contracts due to its confidentiality and flexibility.
Question) Can you explain in detail the difference between arbitration and litigation procedures?
Answer) Arbitration is governed by the Arbitration Act 1996, arbitration is a private dispute resolution process that requires both parties to agree to its use. The proceedings are flexible, allowing the parties to determine the procedure and they take place in a confidential setting. The arbitrator’s decision is legally binding. Litigation involves formal legal proceedings in court, following civil procedure rules. It is a public process and court judgments are legally binding. Although litigation can be costly and time-consuming, it allows for multi-party disputes to be addressed within an established legal framework.
Conflict Avoidance, Management & Dispute Resolution Questions & Answers PDF
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RICS APC Q&A STUDY GUIDES
