Adjudication

Question 1

Pre-mandatory adjudication, what was the landscape of construction dispute resolution in the UK?

Answer 1

1. Contractual adjudication appeared in SOME standard form contracts (NEC etc)
2. Some progress had been made with MEDIATION
3. SLOW UPTAKE: each party had to agree to take part, adoption was slow and
4. ARBITRATION was the dominant option.

Question 2

What did the ‘Constructing the Team’ report of 1994, lead by Sir Michael Latham, recommend and why?

Answer 2

Adoption of adjudication to
1. provide speedier and cheaper means of resolving construction disputes, underpinned by legislation
2. provide a cash flow remedy during execution of a contract.
3. Avoid cash flow issues suffered by smaller contractors dragged through arbitration. They did not have the funds to enforce contractual provisions.

The resulting legislation imposes a form dispute resolution on the industry. This was in response to the fact that the existing means of dispute resolution was affecting the performance of construction industry as a whole.

Question 3

What are three pieces of key legislation in respect of adjudication in the UK?

Answer 3

1. Housing Grants, Construction and Regeneration Act 1996 (the “1996 Act”)
2. Local Democracy, Economic Development & Construction Act 2009 (the “2009 Act”)
3. Schemes for Construction Contracts (the “Schemes”)

Question 4

Key features of adjudication legislation in the UK

Answer 4

1. MANDATORY requirements in construction contracts
2. PAYMENT PROVISIONS were included
3. Statutory right to adjudication with NO OPT-OUT.

Last point was revolutionary with statutory intervention in retreat and with freedom to contract being paramount.

Question 5

Key dates for a contract to be subject to the 1996 Adjudication Acts in respect of statutory right to adjudication

Answer 5

• 01 May 1998 (I MAY adjudicat8)- For the 1996 Act to apply, a contract must have been made on or after this date.
• For the amendments of the 1996 Act (2009 Act) to apply, a contract must have been signed after:
  01 October 2011 (England & Wales) or
  01 November 2011 (Scotland)

Question 6

What are the key provisions of the Schemes for Construction Contracts?

Question 7

What are the key provisions of the Local Democracy, Economic Development & Construction Act 2009 (the “2009 Act”)

Answer 7

[refine]

Question 8

What are the key provisions of the 1. Housing Grants, Construction and Regeneration Act 1996 (the “1996 Act”)

Answer 8

Introduced a statutory right to refer a dispute to adjudication.

Opportunity to have their disputes resolved by an industry professional within 28 days

Question 9

What is the legislation re contracts in writing before and after the 2009 Act?

Answer 9

Before 2009 Act, a contract had to be in writing

The 2009 Act removed this requirement

BUT it is good practise to get terms written down and properly executed.