Mandatory - Conflict Avoidance, Dispute Resolution

Question 1

The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996)?

Answer 1

Purpose: [payment and adjudication rights]
Improve payment practices and dispute resolution in construction contracts.
Payment Provisions:
Ensure regular and timely payments, prohibiting “pay when paid” clauses.
Adjudication:
Establish statutory right to fast dispute resolution through adjudication.
Notice Requirements:
Mandate notice of payment withholding and adjudication.
Prohibition of Conditional Payment:
Ban payment contingent on specific events.
Right to Suspend Performance:
Allow suspension of obligations for non-payment, with conditions.
Exclusion of Certain Contracts:
Certain contracts may be exempted from HGCRA provisions.
Enforcement:
Mechanisms for enforcing payment and adjudication rights, including court proceedings.

Question 2

The Scheme?

Answer 2

Definition: [default payment and adjudication pricedures]
Refers to statutory Scheme for Construction Contracts under HGCRA 1996.
Establishment:
Default provisions for payment and adjudication under Section 108.
Application:
Applies when contract lacks compliant payment or adjudication terms.
Implementation:
Automatically applies if contract lacks compliant provisions.
Content:
Covers payment mechanisms, interim payments, and adjudication procedures.
Purpose:
Ensures adherence to HGCRA 1996 principles in absence of specific contractual arrangements.

Question 3

What provisions do JCT contracts have for conflict avoidance and dispute resolution?

Answer 3

First try and resolve a situation with the contractor via negotiation. Both get a senior level of management in
* Prepare documents, talk with client to see what would be happy settling on and work through the issues
* Then, JCT says to give serious consideration to using mediation
* Otherwise, there is a statutory right to adjudication
* Then either arbitration or litigation as the contract makes provisions for

Question 4

Explain the arbitration process in JCT?

Answer 4

Explain the arbitration process in JCT
* Done in accordance with the JCT CIMAR 2011 rules
* These rules are based on the Arbitration Act 1996
* There is a notice of dispute
* Then a 14 day period to appoint an arbitrator
* Then 14 days for both parties to submit evidence
* Then within 21 days from the appointment, the arbitrator must have a preliminary meeting to discuss how to arbitration process is going to go and make a decision on Rule 7 re: short hearing, documents only or full procedure
* Note, usually the loser bears the cost of the arbitration but the arbitrator has the power to apportion the costs
* In the short hearing, the process is 21 days to make a decision- hearing should be no longer than a day- parties bear their own costs- award should be published within a month of the hearing

Question 5

What changes did the LDEDCA 2009 make to the adjudication process?

Answer 5

Isn’t there more to the below?

This is the LOCAL DEMOCRACY, ECONOMIC DEVELOPMENT AND CONSTRUCTION ACT 2009 which came into force on the 01 October 2011
* Introduction of the statutory slip rule which says that an adjudicator can correct any typos in his decision within the agreed period (note, the scheme says within 5 days)
* Banned ‘tolent clauses’ which said that one party must bear the other party’s costs of adjudication
* Confirmation that the 28 day period for the decision starts to run from the date the referral notice is served