/Docs//S/Index/Dispute.md
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Some Sample Dispute Prevention Contract Clauses
  1. Bonus Pool Plan
    The General Contractor will establish a Bonus Pool program offering every Subcontractor a cash incentive for achieving the Project Goals outlined below.
    1. The Project Goals are:
      1. The project is completed by the Completion Date;
      2. There are no unresolved claims by any subcontractor for interference or damage by any other subcontractor or contractor; and
      3. There have been no accidents which have caused more than {WorkDaysLost.#} work days to be lost.
    2. If all of the Project Goals are achieved, the General Contractor will pay to each Subcontractor, in addition to each Subcontractor’s normal compensation, a bonus of {BonusToSubcontractor.%} of the Subcontractor’s adjusted contract sum.
  2. Voluntary Partnering
    1. The parties intend to encourage the foundation of a cohesive partnering relationship which will be structured to draw on the strengths of each organization to identify and achieve reciprocal goals, to accomplish the objectives of the contract for the mutual benefit of both parties.
    2. This partnering relationship will be bilateral, and participation will be totally voluntary. Any cost associated with effectuating this partnering relationship will be agreed to by both parties and will be shared equally.
    3. To implement this partnering initiative, at the beginning of the relationship representatives of the parties will initiate a partnering development seminar and team-building workshop. These individuals will make arrangements to determine attendees at the workshop, agenda of the workshop, duration, and location, and engage an independent facilitator. Persons required to be in attendance at the workshop will be key personnel from both organizations who are involved in operations under the contract. Representatives of organizations not parties to the contract may also be invited to attend as necessary or appropriate. Follow-up workshops may be held periodically throughout the duration of the contract as agreed by the parties.
    4. The establishment of a partnering charter will not change the legal relationship of the parties to the contract nor relieve any party of any of the terms of the contract.
  3. Contractual Commitment to Enhance A Partnering Relationship
    The parties, with a positive commitment to honesty and integrity, agree to the following mutual duties:
    1. Each will assist in the other’s performance;
    2. Each will avoid hindering the other’s performance;
    3. Each will proceed to fulfil its obligations diligently;
    4. Each will cooperate in the common endeavour of the contract.
  4. Good Faith Negotiation
    The parties will attempt in good faith to resolve promptly any controversy or claim arising out of or relating to this agreement by negotiation between representatives of the parties who have authority to settle the controversy.
  5. Step Negotiations
    1. If a controversy or claim should arise, the parties will attempt in good faith to resolve any controversy or claim arising out of or relating to this agreement promptly by step negotiations between managers and executives of the parties who have authority to settle the controversy.
    2. If the controversy or claim cannot be resolved promptly by the representatives of
    3. If the matter has not been resolved within {Level1.ResolveWithin.Days} of their first meeting, the managers shall promptly prepare and exchange memoranda stating the issues in dispute and their position, summarizing the negotiations which have taken place and attaching relevant documents, and shall refer the matter to {P1.Level2.Manager.Name.Full} and {P2.Level2.Manager.Name.Full}, who shall have authority to settle the dispute. The senior executives will promptly meet for negotiations to attempt to settle the dispute.
    4. If the matter has not been resolved within {Level2.ResolveWithin.Days} from the referral of the dispute to senior executives, either party may refer the dispute to another dispute resolution procedure.
  6. Agreement for Standing Neutral
    The parties will, either in their contract or immediately after entering into their contractual relationship, designate a Standing Neutral who will be available to the parties to assist and recommend to the parties the resolution of any disagreements or dispute which may arise between the parties during the course of the relationship.
    1. Appointment
      The neutral will be selected mutually by the parties. The neutral should be experienced with the kind of business involved in the parties’ relationship, and should have no conflicts of interest with either of the parties.
    2. Briefing of the Neutral
      The parties will initially brief the neutral about the nature, scope and purposes of their business relationship and equip the neutral with copies of basic contract documents. In order to keep the neutral posted on the progress of the business relationship, the parties will furnish the neutral periodically with routine management reports, and may occasionally invite the neutral to meet with the parties, with the frequency of meetings dependent on the nature and progress of the business venture.
    3. Dispute resolution
      Any disputes arising between the parties should preferably be resolved by the parties themselves, but if the parties cannot resolve a dispute they will promptly submit it to the neutral for resolution.
    4. Conduct of hearing and recommendation
      As soon as a dispute has been submitted to the neutral, the neutral will set an early date for a hearing at which each party will be given an opportunity to present evidence. The proceedings should be informal, although the parties can keep a formal record if desired. The parties may have representatives at the hearing. The neutral may ask questions of the parties and witnesses, but should not during the hearing express any opinion concerning the merits of any facet of the matter under consideration. After the hearing the neutral will deliberate and promptly issue a written reasoned recommendation on the dispute.
    5. Acceptance or rejection of recommendation
      Within two weeks of receiving the recommendation, each party will respond by either accepting or rejecting the neutral’s recommendation. Failure to respond means that the party accepts the recommendation. If the dispute remains unresolved, either party may appeal back to the neutral, or resort to other methods of settlement, including arbitration (if agreed upon by the parties as their binding method of dispute resolution) or litigation. If a party resorts to arbitration or litigation, all records submitted to the neutral and the written recommendation will be admissible as evidence in the proceeding.
    6. Fees and expenses
      The neutral shall be compensated at his or her customary hourly rate of compensation, and the neutral’s compensation and other reasonable costs shall be shared equally by the parties.
    7. Succession
      If the neutral becomes unable to serve, or if the parties mutually agree to terminate the services of the neutral, then the parties will choose a successor Standing Neutral.