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INTRODUCING INTEGRAF OF SINGAPORE MEDIATION CENTER (SMC)

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Recently, Singapore Mediation Center – SMC introduced the Integrated Appropriate Dispute Resolution Framework – INTEGRAF.[1] This is a new approach to managing complex commercial conflicts. INTEGRAF provides disputing parties guidance to unbundle disputes and apply the most appropriate dispute resolution mechanism to each aspect of a dispute. If the disputed cannot be solved completely, INTEGRAF involves to minimise the conflict. 

INTEGRAF Rules was issued by SMC on 1/8/2024, stipulates on functions, obligations and powers of the Standing Conflict Avoidance Board – CAB; ways the parties can request to use to  resolve the disputes; regulations on parties’s compliance and enforcement; regulations on exclusion of liability; regulations on confidentiality[2]. The INTEGRAF Rules has the following benefits:

  • Fosters negotiated solutions that help maintain relationships; 
  • Giving recommendations and provides a variety of ADR methods for dispute resolution. This allows for flexible application of ADR methods to complex disputes; 
  • Guidance on the application of ADR methods: provides expert guidance to ensure a clear resolution process; provides clear recommendations, timelines and ADR plans; 
  • Can be used at any stage of a dispute, from dispute prevention to dispute resolution.
Integrated Appropriate Dispute Resolution Framework - INTEGRAF
Source: Singapore Mediation Center – SMC; access here

SMC introduced the CAB mechanism in INTEGRAF Rules. This mechanism is particularly suitable for long-term projects including construction projects or complex transactions. Parties may agree to appoint one or more neutral parties to form a CAB at the beginning of the cooperation. The CAB provides real-time advice, facilitates discussions, negotiations and mediation between parties or makes recommendations and determination when necessary. With the management of the CAB, combined with the flexible application of alternative dispute resolution (ADR) methods, parties have the conditions to prevent or limit disputes in a timely manner.

Specifically, the CAB may consist of one to three members, performing the following activities:

  • Encourage the parties to coordinate with each other to ensure that the contract project is completed on schedule;
  • Assist the parties in avoiding and resolving disputes through negotiation and mediation sessions to prevent the formation of disputes;
  • Facilitate dispute resolution through mediation;
  • Determine a Dispute by issuing a determination;
  • Refuse any dispute that is not within the scope of CAB’s responsibility and/or change the mode of the dispute resolution method as CAB may deem appropriate.

INTEGRAF also provides a “Consultant” to assist the CAB in scheduling and preparing Review Meetings and may coordinate activities after the meetings. Upon written request by the parties, the Consultant, within its authority, shall provide non-binding suggestions on how to resolve the dispute and/or how to approach and resolve a specific issue arising from the contract. However, the appointment of a Consultant is not mandatory for the parties.

In addition, the parties may choose one out of three methods for dispute resolution, including: (i) resolution through mediation with members of the CAB acting as mediators; (ii) the CAB making a non-binding determination on the matter or (iii) making a determination that is binding and final for the parties. In case the parties cannot choose a method of dispute resolution, the CAB will decide on one of the three  above-mentioned methods to resolve the dispute.

The parties shall comply with the mediation agreement at point (i) and the final and binding determination of the CAB at point (iii). If one party fails to comply, the other party may request the court or other competent forum agreed upon by the parties to summarily or by expedited procedure, make the requisite order or award to enforce the decision of the Mediated Settlement Agreement.

Regarding confidentiality, the Rules also have provisions to ensure the confidentiality of disputes such as: the dispute resolution will be confidential, participation in the resolution process requires the consent of the parties and the CAB/Consultant; all parties involved in the resolution process must keep confidential all information, including the existence of the resolution process, the views expressed and the proposed resolution, including information provided or arising during the resolution process; Documents and information relating to the dispute shall not be used in any proceedings relating to the dispute between the parties.

It is noticeable that the CAB is similar to the form of the Dispute Avoidance/Adjudication Board under Decree 37/2015/ND-CP detailed regulations on construction contract or the DAAB (Dispute Avoidance/Adjudication Board) modelled in the International Federation of Consulting Engineers (FIDIC). In addition, the CAB is also similar to the form of the Combined Dispute Board  (CDB) – which has the authority to make recommendations or decisions that are binding on the parties. According to the Secretariat’s preliminary study, the CAB may be consistent with the provisions of Decree 22/2017/ND-CP on commercial mediation because Decree 22/2017/ND-CP allows the disputing parties and mediators to proactively choose the mediation method (Article 14 of Decree 22/2017/ND-CP). Thus, if the disputing parties agree to choose the CAB in the initial dispute prevention for their contract, it may also be possible to apply it within the framework of Vietnamese law. The CAB mechanism proactively prevents disputes from arising by encouraging communication and early intervention through regular meetings, site minutes, risk analysis, and clear contract language. The parties can appoint a CAB at any time, however, the CAB is usually established in the early stages of a project to identify potential issues and address them before disputes arise.

Over the years, the mediators of the Vietnam International Commercial Mediation Center (VICMC) have studied and practiced the role as members of the Dispute Board (DB) or the Dispute Avoidance/Adjudication Board (DAAB). VICMC mediators have quickly learned the CAB mechanism to grasp the dispute resolution activities in Vietnam and Singapore. In case you need to gain an understanding of the CAB to apply to your contract, the Secretariat and experienced mediators in the construction field of VICMC are willing to support.

[1] INTEGRAF, 2024, Singapore Mediation Center, https://mediation.com.sg/service/integrated-appropriate-dispute-resolution-framework/#about-integraf.

[2] For more information, please see INTRGRAF Rules at Rules of The Intergrated Appropriate Dispute Resolution Framework (‘INTEGRAF’) 2024, 2024, Singapore Mediation Center, https://mediation.com.sg/wp-content/uploads/sites/6/2024/01/INTEGRAF-Rules-1-August-2024-Edition-1-1.pdf.

Secretariat

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