Resolving Business Disputes

Flashcards on resolving business disputes based on lecture notes.

What are the primary causes of business disputes?

Miscommunication and misunderstanding.

What is the most efficient way to resolve a business dispute?

To solve it in-house with good communication.

What is the most important communication strategy for diffusing a business dispute?

Always use positive and good communication to diffuse the situation.

What is crucial in resolving a business dispute effectively?

Understanding the facts and where you stand with figures, laws, regulations, and NCC.

How should one explain a situation to a disputing party who lacks understanding?

Explain and clarify the situation using examples, photos, and clear language to alleviate fear.

If a business dispute cannot be resolved internally, what are the other avenues to consider?

Alternative Dispute Resolution (ADR) or state bodies.

Under what framework is building work in Australia largely performed?

Contracts and conformity with common federal and state legislation.

What are the two main components of the legal system?

Common law and statute law.

What is another term for Statute Law?

Acts of Parliament.

What do regulations represent in the context of legislation?

The finer details of legislation or the mechanism of how it works.

What is the first step in evaluating a dispute?

Gather all information, check contracts, specs, and understand manufacturer instructions.

Besides the contract itself, what other documentation is important?

Specifications, drawings, engineering, soil report, etc.

How do changes after a contract is entered (like variations) affect the project?

They can impact quality, time frame, and finances.

How do builders generally view client variations?

Builders often like them as an opportunity to make more money.

What is essential, no matter how small the issue is, when dealing with clients?

Confirm everything discussed verbally in writing to avoid misunderstandings.

What are typical causes of disputes in the building industry?

Delays and non-payment, quality of work, and excessive interference.

What can often resolve disputes before they escalate?

Good communication can resolve it in-house before it escalates.

What are significant potential causes of business disputes?

Lack of clarity in the scope of works and poorly written contracts.

What do dispute resolution clauses in most Domestic Building Contract Acts establish?

Determine how disputes will be resolved if they cannot be resolved internally.

What are liquidated damages intended to represent?

Monetary compensation due to the disadvantage of being late.

What generally summarizes Prime Cost (PC) and Provisional Sum (PS) items?

An allowance.

What is the first method of progress payments?

Percentages of different progress payments from base, frame, lockup, and fix stages.

When is retention money typically released back to the builder?

Half is released upon project completion, and the other half after the defect liability period ends.

What does the client guarantee by using bank guarantees and retentions?

Finished the job, and any minor defects within that defect liability period are promptly fixed.

What is the term for warranties implied by law, often not expressly stated in the contract?

Statutory warranties.

What is the statutory warranty period for structural work in Victoria?

10 years.

What do Australian Standards represent?

Minimum requirements.

What is most important to be on the right side of the business disputes

Being fair, getting facts straight, and knowing what you're doing.

What is the most common reason in conflicts

Misunderstanding or miscommunication.

Why is it important to put communication in writing

To minimize that risk of disputes, you know, like so all what we're doing is trying to minimize that risk of dispute because trust me, it does happen.