A Buyers compilation from web - Disputes & Dispute Resolutions : Dispute is believed. To be the difference in what is agreed as per a contract and what is actually performed. Most of the time, this is true. However not all the time. I believe strongly by practice of over last couple of decades that dispute is actually the difference between what is perceived and expected by one party from a contract and contractor (or other party) and the actual role of the actual performance - and this gap in understanding leads to a claim, then series of claims and then a good established dispute. As procurement and as supply chain professionals, we have to keep reminding ourselves that a good understanding of what created this dispute will help you to make good conscious well informed and thought out decisions about the best way to try to resolve the dispute. Normally, you will have a documented contract or an agreement or an order copy. The first thing you should do is read it carefully. Understand what is it thats in the contract and or clauses. OR check what is not in contract. However you would love to, if your contract does not support, if you do not believe its fair when the contract is weak, please do not proceed with claims and formal dispute notifications. Contracts do specify the rights and responsibilities of each party and detail obligations which each party must meet. Usually from a procurement angle, most of these legal and we are tutored and trained to attach these, not to read. Once you attach, the legal takes over. This understanding is very much Incorrect. Additionally, there may be also a dispute resolution clause in the contract that needs to be carefully read and complied if you do have a dispute. If you have a verbal commitment from the party, its on weak zone - but its still part of a contract - if you have some documentary proof to make it clear like a Fax or Email. Emails that confirm what was agreed, a list of specifications, a quote with relevant details about materials, timeframes, any notes about your discussions, etc. Check how important it is to vendor, to yourself to your production, your stocks, etc. Also, if the vendor is old, if there is a dispute its between better that you talk to them transparently and try to find a way out. If you expect this is going to create a reasonable high volume or criticality impact on your production line or your organization or business,write down the issues that make up the dispute. You also need to simulate with your friends, colleagues and within yourself to check what other party might identify as their key issues and then design or define your plan. Consider how this will impact on cash flow, time and resources, productivity, future business, and personal relationships. There are three commonly used methods of resolving disputes without going to court: negotiation mediation arbitration Negotiation Solving disputes through negotiation is a part of everyday life. For instance, in a situation where your teenager asks you for the car keys, after some discussion you reach an agreement on conditions for using the car and when to return home. This is an example of negotiation. You can refer friends, office who will. Mediation People involved in a dispute can ask a mediator, an unbiased and impartial person, to assist them in their negotiations. Where negotiation has not been successful, the mediator can often help to ease tension and encourage discussion between the parties. The mediator can help the parties themselves find a solution that can often result in a win-win situation, where everyone is satisfied with the result. Participation in mediation may or may not be voluntary. It depends on you and the type of meditation. Practical examples are certain family disputes, business disagreements, contract disputes, insurance claims, as well as employment and environmental issues, to name a few. Arbitration When people in a dispute cannot resolve the dispute themselves, either through face-to-face negotiation or with the assistance of a mediator, they can agree to refer the matter to arbitration. In arbitration, a neutral person or panel of people hears the facts and issues and makes a decision. Arbitrators are often people who are experts in a specific area of the law or a particular industry, especially in cases where the decision-maker needs to be knowledgeable about a particular subject matter or business practice. Arbitration tends to be less formal and quicker than going to court. The parties can agree in advance on the ground rules for the arbitration. The arbitrator then makes a decision based on the facts, any contract between the people, and the applicable laws. The arbitrator will explain how the decision was reached. Whether you need to listen to Arbitrator or not is decided before hand on the basis of what you agree with other party and/or as decided by corporate Just for information to keep in mind, Dispute Resolution (DR) is the term used to describe a variety of ways of dealing with disputes, including the option of going to court. Alternative Dispute Resolution (ADR), is a solution that comes up without going to court. When Should Disputes Be Left to the Courts to decide: Any contract dispute that ends in violence. When this has to be a major reference or an example for other similar disputes. Where there is a need to establish precedent or where the result will end up affecting several families or organizations and the cases may have to be referred to courts. As a buyer, very very important of handling a dispute. Important things of informing dispute: Make sure you notify the right contact, clearly. Address your letter to the person who is responsible for supervising the person or area you are having trouble with, or write to the head of the business or organisation. Branding – how you inform is important, not in verbal, not by a mobile message or a casual email that may look serious to you. If you have a business letterhead, business logo or brand, add this at the top of your letter. It will make it look more professional. Content – Set out your subject and dispute clauses, give complete contract reference and contract background information. Make it clear in your communication that you are looking to resolve the situation professionally and quickly. Avoid laying blame for the situation. Attachments – Dispute has to be understood clear in completeness. Correspondences thereafter just to understand context, mail after mail, will defeat the purpose and reduce gravity. Attach copies of any relevant paper work to your letter. For example, a copy of your contract, an email, a list of specifications, .a quote, an invoice or any other document that supports your Letter of Concern. Copy – Needless to say, make a copy of your letter and keep it. Just sharing these for reading reference compiled of experience from procurement professional experience and best practice compiled from web. End of day, we do not intend to reach Arbitration oor even Mediation if you as a buyer can put a clear and complete contract aligned to both parties by pre agreement n mutual consent. More importantly, have a very high degree of professional and effective rapport with your suppliers where any concerns on understanding and perceptions are resolved by mutual agreement. Obviously, if this does not work out, the above helps. Best wishes
Posted on: Sun, 25 Jan 2015 14:17:09 +0000
Trending Topics
Recently Viewed Topics
© 2015