The Essential Role of ADR in Oil & Gas Contracts
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In the oil and gas sector, the significance of Alternative Dispute Resolution (ADR) in Purchase Orders (POs) and contracts is paramount. Given that claims and disputes are often inevitable in complex project management, it is crucial to establish a clear and structured resolution process.
Leaving dispute resolution to chance is unwise. Contracts should specify the names of arbitrators or mediators to ensure that both parties engage qualified professionals, thereby avoiding the risk of involving unqualified individuals in this vital responsibility.
By integrating defined modes of ADR — such as mediation or arbitration — companies can effectively circumvent costly and protracted litigation. This proactive approach not only facilitates smoother operations and preserves business relationships but also reduces financial strain. Ultimately, it promotes a culture of efficient dispute management and supports business continuity.
COO, BIZVILLE PROJECT MANAGEMENT Limited
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