Adjudication Flashcards
What is adjudication?
Adjudication was developed to allow for construction contract disputes to be resolved more quickly and cost effectively than arbitration or litigation.
Objective is to find a fast working solution to an issue so that parties can quickly resume or continue work under the contract.
Can you explain how the adjudication process works in terms of time frames?
Following a dispute being raised, either party can serve notice on the other party of its intention to refer the dispute to adjudication.
Within 7 days of issue of the notice, the referring party (party who commenced the proceedings) must serve on the other party its referral (statement of case). If the referral is not served within that time, the adjudication would likely be void.
The referral must contain detailed explanation of the referring parties claim in respect of the dispute identified within the notice, along with any supporting documentation.
Within that 7 day period, the referring party must secure the appointment of an adjudicator. This will either be a person named in the contract or if no one named, a nominating body e.g. RICS named in the contract.
Following appointment, adjudicator will set out a timetable, and will usually permit the other party to issue a response to the referral.
The adjudicator will make his/hers decision within 28 days of the referral.
Within adjudication, can the period of 28 days be extended?
Yes it can be extended to 42 days if mutually agreed by both parties.
Is the adjudication process binding?
Yes is it binding, and enforceable in court, unless the adjudicator acts outside his/her jurisdiction or is biased to the other party.
Is there an appeal process with adjudication?
There is no appeal process, however the parties can take the same dispute to litigation
What if a building contract does not contain provisions for adjudication?
Its now a legal right due to the construction act coming into play.
Who pays for the adjudication?
Both parties liable to pay the fees, the adjudicator can usually decide who is to pay for the fees and expenses.
