THE RELEVANCE OF ADR IN A GLOBAL RECESSION DISPUTE RESOLUTION IN COMMERCIAL ENTERPRISE CONTRACTS

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THE RELEVANCE OF ADR IN A GLOBAL
RECESSIONDISPUTE RESOLUTION IN COMMERCIAL
ENTERPRISE CONTRACTS

• Penny Mudford FAMINZ(Arb), AMInstD
• Wellington, New Zealand

RESOLUTION WORLD
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Commercial enterprise contracts

• 1. Definitions
• 2. Examples in areas of -
• Information and communication technology
• Farming
• Construction
• 3. Features of contracts
• 4. Recessionary pressures that affect contracts
• 5. Use of dispute resolution
• 6. Summary and Conclusions

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What are commercial enterprise contracts

• A contract between two or more parties
• Contract may be for one-off project or ongoing
• Every partys contribution is critical to the
  contract outcome
• Parties are not easy to replace or substitute
• Parties bring very different expertise or
  resources to the contract

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Examples of commercial enterprises

• Mobile Banking
• (information and communication technology)
• Sharemilking
• (farming)
• Roading and commercial building projects
• (construction)

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Typical dispute resolution processes
Negotiation Mediation
Conciliation Adjudication
Arbitration Tribunal
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Recessionary pressures that affect enterprises

• Drop off in market confidence
• Insolvent businesses
• Cash flow problems from reduced revenues / sales
• Pressure from banks to reduce the banks risk
• Redundancies and layoffs
• A need to cut back on costs
• Uncertainty about future work

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Using dispute resolution to best effect in
commercial enterprise contracts

• Early intervention rather than delayed action
• Be alert to problems before they escalate
• Have a dispute management plan before any
  disputes arise
• Involve an independent DR practitioner in the
  project team and use their services proactively
  and strategically
• Work within the time limits set out in the
  dispute procedures so as to avoid disputes of
  dispute procedures

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Summary and Conclusions

• Commercial enterprise contracts usually have
  selection of dispute resolution processes to
  apply when disputes arise
• Select the most suitable process for the dispute
  and stick to the procedures set out in the
  contract
• Strategic and early intervention of disputes are
  necessary to keep the project progressing and the
  contract alive
• Recession provides opportunities to dispute
  resolution practitioners

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