Government plans local authority-specific 'dispute resolution commitment'

The Government is to develop and launch a local authority-specific ‘Dispute Resolution Commitment’ (DRC) mechanism later in 2012, it has emerged.

The Local Government Association has said it backs the move.

Originally know as the ADR Pledge, the DRC was started by the Government in 2001.

It requires Whitehall departments and their agencies to be “proactive in the management of disputes, and to use effective, proportionate and appropriate forms of dispute resolution to avoid expensive legal costs or court actions”.

The commitment also includes adopting appropriate dispute resolution clauses in all relevant government contracts.

The model clauses have been agreed with the Cabinet Office Efficiency and Reform Group.

A Ministry of Justice report claimed that alternative dispute resolution had saved the taxpayer more than £360m in a decade.

Ministers announced in November 2010 the intention to extend the DRC on a voluntary basis to businesses and local authorities.

A new version of the commitment for Government departments and agencies was formally unveiled in June 2011.

The LGA said: “The Government has recently held meetings with business leaders and representatives to actively encourage the use of ADR to resolve business disputes. The Government is keen to engage local authorities to do likewise. The aim is to develop and launch a local authority-specific DRC later this year.”

More information on the DRC and associated guidance can be found on the MoJ’s website here.

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