Right now, the UK Government is facing a ‘brewing conflict’, as pressure to reconcile two competing priorities – strengthening safety regulations and delivering ambitious housing targets – builds. This article comes from Fayola-Maria Jack, Founder of Resolutiion, a human-centred global AI platform…
“It follows a recent (Sept 2024) enquiry into the Grenfell Tower fire, which resulted in 58 recommendations, with Ministers having to decide which of the measures to implement. It’s now several months on, and a number of measures to enhance building safety have come into effect, from mandatory registration of higher-risk buildings, to cladding remediation deadlines, with severe penalties for non-compliance.
While progress to improve building safety is, of course, much needed, stricter regulations come at a cost, especially for an industry already under significant strain. Not only are building firms grappling with targets to build 1.5 million new homes by 2029, and are pressured to fix faults in previously built blocks, but they’re also suffering from the impact of higher interest rates.
Combined, these factors are seeing developers, regulators and contractors at odds over how to implement new standards without stalling much-needed housing projects.
It’s a recipe for deep conflict and pervasive disputes across a number of areas, causing issues such as:
– Difficulty in balancing the need to ramp up safety measures and the urgent demand to deliver more homes, potentially leading to delays and expensive disagreements.
– Different interpretations of the new post‑Grenfell rules across various parties, which can very easily lead to confusion and friction.
– Extra safety measures, although vital, can unintentionally slow down the pace at which new homes are built, causing strain on budgets, diverting resources, and adding extra administrative work.
– Miscommunication and lack of frequent dialogue, causing misunderstandings that have the potential to escalate into more significant issues under the added pressure.
These sources of conflict – all of which are becoming increasingly common right now – aren’t just disrupting the odd project here and there; they’re seriously impacting timelines, driving up costs, and putting additional pressure on already tight budgets across the majority of projects.
We’re also seeing delays and reworks add to the financial strain, jeopardising the overall financial viability of projects, while companies’ reputations and general trust across the industry is also at risk, especially when conflicts remain unresolved, become public or lead to repeated delays.
All of this can set off a cycle of further disputes and hesitance in forming future partnerships or securing future projects, while ongoing uncertainty can possibly deter potential collaborators and investors.
Key conflict resolution strategies for the construction industry
With the above in mind, the case for effective, proactive conflict resolution is strong. Putting the right strategies in place can ease much of the friction we’re seeing in the sector right now, allowing projects to be kept on track, industry-wide trust and strong relationships maintained, and helping ensure both safety and progress in the current regulatory environment.
Drawing on our tried and tested approach to conflict resolution, we recommend the following top five strategies:
1) Align on goals, drivers and risks right at the start. This about how you are setting up projects and the critical relationships that underpin them. Getting this right will help iron out any potential misalignment before it develops into a bigger problem. As an example of this simple strategy’s effectiveness, we once assisted a brewing dispute between two parties by realigning them on core goals, the drivers behind those goals, and corresponding value, which led to a revised, workable timeline that kept the project on track.
2) Maintain open and regular communication channels. Transparency should be a given, but what about timing? Don’t wait for tension to suddenly champion ‘honest and open dialogue’. As well as being open early on, communication must be transparent from the very start, and maintained throughout a project or partnership to ensure teams can tackle emerging issues collaboratively. We’ve seen how transformative transparent dialogue can be firsthand, once guiding a group of contractors through unexpected design changes that had created commercial tensions mid-project, which ultimately saved costs and maintained project momentum.
3) Provide training on conflict resolution. Conflict resolution is a core competency. Investing in training on conflict and disputes equips teams with the tools to turn disagreements into opportunities for progress. It’s a complex skill, and requires a high degree of resilience, and so we’ve seen this proactive approach help teams reframe tensions and solve problems more efficiently time and time again.
4) Adopt collaborative approaches. Develop conflict resolution toolkits and other resources that reinforce collaboration, and empower individuals with the right resources to navigate complexity in the best way possible.
5) Consider a third party. It’s really important to proactively seek support. It saves tremendous amounts of time and cost. So, when tensions run high, consider bringing in a neutral third party conflict resolution company to provide unbiased expert guidance – and look for those that utilise cutting-edge technology for a higher success rate. We’ve been able to not only drive efficient resolutions that solve the immediate problem, but also lay the foundation for stronger relationships post any kind of conflict or tension.
Summary
The above strategies will not only help the industry through this present challenging spot – easing tension caused by the government’s juxtaposing demands – but will also serve as a foundation for more collaborative, resilient ways of working in the long term.
In other words, it’s not just about surviving the current crunch; it’s about future-proofing the way the industry works so it’s ready to handle whatever may come next.”
