Default provider for Alternative Dispute Resolution in the UK

RICS has awarded the Centre for Effective Dispute Resolution the contract to be the default Alternative Dispute Resolution (ADR) provider for consumer complaints for UK-based RICS-regulated firms, following a competitive tender in Spring 2023.

You can read case studies and data from CEDRs 2023 adjudication to learn more about the CEDR service.

ADR is designed to resolve disputes that have not been resolved through a RICS Member Firm's internal complaints procedure. Every RICS-regulated firm must have named an ADR provider in their complaints handling procedure (rics.org), as set out in RICS Rules of Conduct (rics.org). RICS maintains a list of ADR providers that have been approved by SRB for firms to choose from.

In order to ensure consumers are protected when instructing any RICS-regulated firm in the UK, RICS has a contractual agreement in place with an ADR provider who will consider disputes across most areas of surveying practice (the ‘default provider’).

The Centre for Effective Dispute Resolution (CEDR) has acted as this default provider since 2018 and, after a comprehensive tender process, RICS has entered into a new contract with CEDR to provide this service for 3 years from 1 August 2023.

If you are using CEDR as your consumer ADR provider, please register with CEDR by following this link. Please still register, even if you have already used CEDR.

How is it funded?

All alternative dispute resolution services approved by SRB are free to consumers. CEDR’s Scheme is free of charge to consumers. RICS-regulated firms will pay a fee if a customer takes a complaint to CEDR and it is subject to Early Settlement, or it is accepted for adjudication, regardless of the case outcome. This means that even if the complaint is not upheld, the firm is responsible for paying for this service and the firm cannot seek to recoup these costs from the consumer. Detail of these fees is available on CEDR’s website. If either of the Parties incurs costs through the use of legal representation and/or using the Scheme, the Parties agree not to claim the costs of doing so from each other, whether through the Scheme or through legal action.

How does a RICS-regulated firm choose CEDR?

If they wish to use the default provider, a RICS-regulated firm should select the Centre for Effective Dispute Resolution (CEDR) for consumer redress on the annual return. They should familiarise themselves with CEDR’s service, fee structure, and ensure their complaints handling process meets the requirements of the Rules of Conduct.

An additional ADR provider may be required for complaints regarding some surveying activities not covered by CEDR’s default service (see below).

What role does RICS play?

SRB has approved a number of ADR providers for RICS-regulated firms across the globe, and RICS has awarded CEDR the contract to be the default provider for firms based in the UK. This does not mean that it is mandatory to use CEDR’s services. Firms can select another ADR provider on the approved list. [GB1] See Complaints Handling and Alternative Dispute Resolution (rics.org) to download the approved ADR provider lists in your region.

All the SRB-approved ADR providers, including CEDR, provide an impartial dispute resolution service. RICS plays no part in CEDR’s investigations or the decisions of its adjudicators, and has no power to change those decisions.

If there is evidence that a RICS-regulated firm has not complied with an Award from CEDR, or paid CEDR’s case fees, RICS will consider the Firm/Member to be non-compliant with their professional obligations. This non-compliance will be dealt with in the usual way within RICS regulatory framework.

What kinds of complaints does CEDR’s service cover?

CEDR’s Scheme can be used to settle disputes between customers and companies regarding surveying activities. ‘Surveying activities’ are set out under Article 3 of the RICS Royal Charter (rics.org).

CEDR cannot be used for disputes related to residential agency surveying services. Firms undertaking this activity who engage CEDR as their ADR provider will therefore require an additional government-approved ADR provider for residential agency services, such as lettings agency work (England and Wales), property management work (England and Wales), or estate agency work dealing with residential property (UK). Schemes that cover this work include the Property Redress  Scheme (theprs.co.uk) or The Property Ombudsman (tpos.co.uk).