Conflict Avoidance, Management and Dispute Resolution Procedures Flashcards
What is the Housing Grants construction Regeneration Act 1996?
The HGCRA 1996 provides for the resolution of disputes by way of adjudication. The adjudication mechanism is intended to be accessible, quick and cheap. A construction contract should set out requirements for adjudication that comply with the HGCRA 1996, s108. If it does not, the provisions of the Scheme will apply.
Why was the Construction Act 1996 introduced?
The Housing Grants, Construction and Regeneration Act 1996 (HGRA - also known as the Construction Act) is intended to ensure that payments are made promptly throughout the supply chain and that disputes are resolved swiftly.
What is The Scheme for Construction Contracts for ?
The Scheme for Construction Contracts (England and Wales) Regulations (also known as The Scheme for Construction Contracts) is a scheme which applies when construction contracts do not comply with the Housing Grants, Construction and Regeneration Act.
When was adjudication introduced ?
The Housing Grants, Construction and Regeneration Act 1996 (“the Construction Act”) introduced the right of any Party to refer “at any time”, “any dispute” to Adjudication.
What is adjudication ?
Adjudication is one of the dispute resolutions, which is far quicker than most other forms of dispute resolution processes.
What is the Adjudication Timeline ?
The Adjudicator is to reach their decision within 28 days, following the service of the Notice of Intention to Adjudicate. This can be extended by 14 days with the consent of the Referring Party, any further extension must be agreed by both parties.
When a dispute can be referred to adjudication ?
Before a party is able to issue a notice to adjudicate, the dispute has to be ‘crystallised’
What is crystallisation ?
The dispute in the notice of adjudication must have crystallised between the parties prior to the service of that notice, even though such crystallisation may require no more than the service of a claim by the claiming party and subsequent inactivity, for a fairly short period , by the responding party.
How adjudication is instigated ?
Once the Parties are clearly at the point that they are in dispute, commonly known as the “crystallisation of the dispute”, the Referring Party (the Claimant) is able to submit its Notice of Intention to Refer a Dispute (“Notice of Adjudication”) to the Responding Party (the Defendant).
What is the timing for the Referring Party to to appoint their adjudicator ?
During the 7 days period from the ‘Notice of Intention to Refer’ the Referring Party refers to Adjudication Nominating Body for adjudicator. Adjudicator has 2 days to refuse.
What is the timing for the Referral notice ?
The Referral Notice should be issued within 7 days of the Notice of Adjudication. This will be Day 1 of the process. The Notice can only be issued after the Adjudicator is appointed and should be issued to the Responding Party at the same time as it is issued to the Adjudicator. From here, the 28-day period to decide commences.
What is the timing for the Response ?
The Responding Party is usually allowed 7 days to submit its Response. It is quite normal for the Responding Party to request that this period is extended to 14 days
What is the timing for the Response ?
The right to serve a Reply (a response to the Response) is then likely to be requested and granted with normal periods of service being between 3 and 5 days.
What are the Rejoinder and Surrejoinder
Further submissions allowed by adjudicator but only where necessary and only if appropriate extension to the period to decide can be agreed between the Parties.
How payments of the adjudication fees are proportioned ?
The general rule surrounding payment of the Adjudicator’s fees is that the unsuccessful side will pay the Adjudicator’s fees (the legal principle of the costs following the event), however, this is not always the case. Both Parties are jointly and severally liable for the Adjudicator’s fees. The Adjudicator is allowed to apportion his fees as he sees fit.
As the Parties are jointly and severally liable if the unsuccessful Party refuses to pay the Adjudicator’s fees, the Adjudicator can direct the successful Party to pay them.
