Settling customer disputes in court are a thing of the past with ADR, reveals Tracy Dilworth, senior dispute resolution officer at Dispute Assist.
The average time to settle a civil claim through the small claims system stands at 360.5 days, but alternative dispute resolution (ADR) offers potentially huge cost and time-saving benefits as a resolution can often be turned around in days, not weeks.
What resolution methods are available?
Alternative dispute resolution (ADR) applies to a range of methods that settle disputes between a builder and a customer which they can’t settle at the complaint stage.
So-called ‘softer’ methods of ADR include mediation and conciliation, where a professional and impartial mediator facilitates a conversation between the builder and customer, with both methods not usually legally binding.
There is also adjudication, which can involve an ombudsman, but the outcome is usually only binding on the business. There is also arbitration, where a dispute is referred to an independent arbitrator to produce a ruling based on evidence from both parties.
ADR also offers a more formal process called expert determination, where a complaint is reviewed by an industry expert to provide a legally-binding ruling. As an industry expert reviews the case, expert determination is often a quicker process than arbitration.
The expert is well-acquainted with the nature of the dispute and won’t have to spend time providing both parties with notes on the reasoning behind their decision. Expert determination helps both parties reach a fair resolution, and such services can pre-emptively be included in service contracts so home improvement professionals and their customers are safe in the knowledge that if a dispute emerges, it can be addressed effectively.
Quick, efficient and cost effective
The ADR process is a lot quicker and more efficient than the court process. For example, trained and impartial dispute resolution officers at Dispute Assist, an ADR provider under the Chartered Trading Standards Institute, boast an average and industry-leading resolution time of just 5.2 days.
The entire process has a maximum resolution period of 90 days – much less than the average of 51.2 weeks for a civil claim to proceed through the UK small claims system in the courts – although extensions can be agreed if required and agreed by both parties.
While the cost of legal advice and court appearances can spiral and add financial pressure on a building business, using ADR avoids this altogether for both parties in dispute.
Enhancing customer service and reputation
The use of ADR – and in particular expert determination as a swift and effective way to settle a dispute – can increase trust in builders who promote that they use it, because potential customers know that any future dispute will be handled professionally.
By using ADR, parties can choose to keep all relevant information confidential, unlike details being disclosed in a courtroom, to allow a business to maintain its brand reputation and minimise any impact on future sales.
And further peace of mind is obtained, as businesses who use an ADR provider are compliant with the Consumer Rights Act of 2015. Under this Act, businesses selling to consumers are legally required to point customers to an ADR provider if a dispute can’t be handled in-house.
While the courts once seemed like the only option available to builders in dispute with customers, an array of ADR methods now await them. There are varying levels of ADR to suit every dispute, so builders can carry on with their work assured that any issue will be handled quickly and smoothly, and for a reasonable fee.
For more information on Dispute Assist visit https://www.dispute-assist.co.uk/.
