Conflict and Dispute in Commercial Project

To safeguard against all possibilities, conflict management and dispute resolution are very essential. Conflict and disputes are inevitable on commercial projects right from the beginning of business itself.
It is quite clear that conflict and dispute are inevitable in commercial projects. To check whether the contention is right, a deep understanding of the terms like conflict, dispute, etc. are essential.
Conflict: The term conflict can be defined as “Friction or opposition resulting from actual or perceived differences or incompatibilities” (Business Dictionary). Conflict can be destructive as well as constructive. It has positive and negative aspects. Conflicts mainly arise from the difference of perception among the people. Individuals and groups perceive things in a different manner and thus the difference in perception becomes the basis of conflict. The difference in perception can lead to conflict and thereby the emergence of new ideas takes place. That’s why it is said that to an extent conflict should be encouraged. So conflict is good and constructive to a certain extent and after the level, it is bad and destructive. It is very difficult to determine the degree to which conflict in an organisation is to be encouraged.
Dispute: The term dispute is defined as “ a disagreement or difference that arises in connection with the entering into, renewing, or revising a collective agreement and in respect of which arbitration or conciliation may be requested’’ (Treasury Board of Canada Secretariat). Disputes can be in connection with any matter concerning two or more individuals or groups. Unlike conflict, a dispute is not so constructive in nature. The subject matter of a dispute can be anything related to the entering into, renewing of, or revising a collective agreement.