BUSINESS INFORMATION
Resolving a dispute
There are essential steps you can take to address conflicts effectively while safeguarding your business relationships.
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Often the most costly part of resolving a dispute is the time spent dealing with it instead of running your business.
Whether the disagreement involves a customer, supplier, business partner, or employee, the approach may differ, but certain key steps can help you manage the situation and preserve positive relationships.
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Tips for Managing a Dispute
Document all critical details related to the dispute, such as dates, times, product or service information, warranties, photographs, leases, agreements, contracts, and summaries of previous discussions or correspondence. Organize your documentation chronologically and emphasize the most relevant sections.
Maintain a calm, polite, and professional tone in all communications, whether spoken or written. Avoid using emotional or accusatory language. Strive to understand the other party’s perspective to foster a constructive dialogue.
Seek a mutually beneficial resolution that helps restore the business relationship. Brainstorm potential solutions and be prepared to negotiate realistically. Evaluate how each possible outcome—or the lack of one—could affect your business in terms of time, finances, and future collaborations.
Reach out to the other party to discuss a resolution. Ensure you are speaking with someone who has the authority to settle the dispute. While minor issues may be resolved over the phone, more complex matters often require face-to-face discussions. Listen attentively, take notes, and avoid interrupting. Respond calmly and respectfully once they have finished speaking. If an agreement is reached, document it in writing and share a copy with the other party.
If discussions fail to resolve the issue, the next step is to formally write to the other party, clearly outlining your position. This serves as another opportunity for resolution and can also act as evidence of your efforts if further action is needed. The letter should detail the dispute, steps taken to address it, the desired solution, and a proposed timeframe. Include relevant evidence and send the letter via email or post, keeping a copy for your records.
We have developed a sample letter of demand for recovering a debt and a letter of complaint for other matters. You can download the sample letters and tailor them in relation to your dispute.
If discussions and written communication with the other party do not resolve the dispute, you may consider involving a third party for assistance.
Litigation should be approached with caution. Instead, explore alternative dispute resolution methods such as negotiation or mediation. These options are often more cost-effective and less stressful than court proceedings.
Our free dispute resolution service can help you resolve a dispute with another business or a government department.
View our short video to learn more about our dispute resolution service.
- Provides the debtor with a clear demand for payment.
- It gives the debtor one more chance to pay before you take further action.
- It can help maintain goodwill and a positive working relationship to avoid potentially hostile and expensive legal proceedings.
- It could provide useful written evidence if you need to take the matter further (send it by registered post or courier to ensure you have proof of delivery).
Guide to managing business disputes
An essential part of being a small business owner is understanding how to best deal with problems. Many issues can be handled using common sense, however small problems can sometimes escalate into disputes.
Methods of dispute resolution
Our service provides alternatives to court for resolving disputes. These include guided resolution (negotiation) and mediation.
Guided resolution involves an independent third party who collaborates with both sides to clarify the issues in dispute, explain rights and responsibilities, and explore potential solutions.
Mediation is a voluntary and structured process where a mediator helps the parties reach a mutually acceptable resolution. The mediator facilitates the discussion but does not impose a decision, leaving the outcome to the disputing parties.
For subcontractors in the construction industry, the first step is to review the contract for a dispute resolution clause. If such a clause exists, adhering to the specified process is essential to avoid breaching the contract.
Our dispute resolution service employs intensive case management, a form of guided resolution or negotiation, to assist parties in resolving conflicts. Additionally, we offer access to subsidized mediation services to support amicable settlements. Find out more about the types of disputes we can assist with.
Consider Court as a Last Option
Resolving disputes through legal proceedings can be costly, time-consuming, and demanding. It’s essential to evaluate the financial, temporal, and emotional investments required, along with the potential impact on your business, to determine if pursuing litigation is justified. Before considering legal action, consult a legal professional and explore alternative solutions to address the issue effectively.
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