Disputes between suppliers and customers are not always loud. They often begin quietly – with a missed deadline, a vague email, or a tense meeting. Recognizing when a dispute resolution attempt is underway is critical to managing risk, preserving relationships, and ensuring compliance with contractual terms.
Whether you’re overseeing a public sector infrastructure contract, a curriculum rollout, a manufacturing supply chain, or a faith-based vendor engagement, these eight considerations will help you identify when resolution is being attempted – and whether it’s heading toward success or escalation.
1. Review Contractual Dispute Resolution Clauses
Start with the contract. Most agreements include clauses outlining how disputes should be resolved – negotiation, mediation, arbitration, or litigation. These clauses often specify timelines, notice requirements, and escalation paths.
Why it matters: If a supplier or customer initiates a step outlined in the dispute clause – such as requesting mediation or issuing a formal notice – it signals a resolution attempt. Contracts may also define what constitutes a dispute, helping teams distinguish between informal concerns and formal conflict.
2. Monitor Communication Tone and Escalation Patterns
Dispute resolution often begins with a shift in tone. Emails become more formal, meetings more guarded, and language more precise. Escalation – such as involving legal counsel or senior leadership – is another signal.
Why it matters: A change in tone or escalation of communication often indicates that parties are moving from operational dialogue to dispute resolution posture. Recognizing this early allows for timely intervention.
3. Track Requests for Documentation or Clarification
When one party begins requesting detailed records – performance logs, delivery receipts, contract excerpts – it may be preparing to assert a claim or defend against one.
Why it matters: Requests for documentation often precede formal resolution steps. They signal that a party is gathering evidence, either to support a position or to prepare for negotiation.
4. Identify Use of Third-Party Facilitators
Engaging a mediator, arbitrator, or external consultant is a clear sign that dispute resolution is underway. Even informal use of a neutral facilitator – such as a shared advisor – can indicate an attempt to resolve conflict.
Why it matters: Third-party involvement formalizes the resolution process and often reflects a desire to avoid litigation. It also shifts the dynamic from adversarial to collaborative.
5. Observe Performance Review Cadence and Content
Disputes often surface during performance reviews. If reviews become more frequent, more detailed, or more critical, it may reflect an effort to resolve concerns before escalation.
Why it matters: Performance reviews can serve as informal resolution platforms. When parties use them to address grievances, it signals a resolution attempt – even if not labeled as such.
6. Look for Corrective Action Plans or Remediation Proposals
If a supplier offers a corrective action plan or a customer proposes a remediation timeline, it’s a clear sign that both parties are trying to resolve the issue within the bounds of the contract.
Why it matters: Corrective plans are structured resolution tools. They often reflect good faith efforts to fulfill obligations and avoid formal dispute escalation.
7. Assess Willingness to Modify Terms or Extend Timelines
Flexibility – such as agreeing to a contract extension, scope adjustment, or payment rescheduling – can indicate that parties are resolving conflict through mutual accommodation.
Why it matters: Contractual flexibility is often a resolution strategy. It shows that parties are prioritizing relationship and performance over strict enforcement.
8. Confirm Whether Formal Notices Have Been Issued
Formal dispute notices – such as breach letters or intent to arbitrate – are definitive signs of resolution attempts. However, their absence doesn’t mean resolution isn’t underway.
Why it matters: Formal notices trigger contractual resolution mechanisms. But informal efforts often precede them, and recognizing those early can prevent escalation.
Final Thought: Resolution Is a Process, Not a Moment
Identifying dispute resolution attempts requires attentiveness to tone, timing, and tactics. These eight considerations help organizations recognize when resolution is underway – whether through formal channels or relational gestures.
Across sectors, the most effective contract managers are those who spot resolution early, engage constructively, and guide parties toward clarity and closure.
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