Adjudication

 

 

 

 

 

 

 

 

 

 

Adjudication is a form of alternate dispute resolution used widely in the construction industry.

Adjudication in construction contracts recognises the distinct nature of the construction industry and the types of disagreement that can arise within such context.

Such dispute mechanism is designed to offer a quick, cash-flow remedy during the process of a construction project.

Adjudication is NOT litigation.

 This process involves the appointment of an independent person jointly selected by the parties.

The obligation to adjudicate only arises as a consequence of a pre-existing agreement to do so.

This form of dispute resolution differs from other forms of dispute resolution, as the outcome of the decision is binding between the parties and is final unless and until reviewed by arbitration. The parties must give effect to such decision, irrespective of whether either party wants the decision to be reviewed.

The strict timeframes dictated by an adjudication process makes it cost effective.

Adjudication is the preferred route to follow as it saves time and is cost effective

What kind of disputes can adjudication be used to resolve?

The main aim of adjudication is to maintain cash-flow during construction projects making it appropriate for resolving disputes relating to:

  • delay & disruption claims;
  • extension of time claims;
  • final accounts;
  • breach of contract;
  • termination; and
  • certification of “practical completion”.

WHY ADJUDICATION?

  • Parties can select the Adjudicator with specific characteristics and expertise.
  • Allows parties to obtain an enforceable decision in a short period of time.
  • Minimises disruption to overall construction project.
  • Fraction of the cost of litigation.
  • Parties to a construction dispute have differing financial resources. The lower cost regime and swift decision puts parties on a more equal footing.
  • Adjudication rarely has lengthy oral arguments or submissions.

WHY NOT?

  • In the case of a complex claim, the restricted time frames prevent parties from addressing all the facts in adequate detail which may result in cutting corners and overlooking crucial facts.
  • There is no cross examination or formal evidence;
  • A successful party won’t necessarily recover costs of an adjudication;
  • The adjudicator’s decision must be enforced.

HOW TO ADJUDICATE EFFECTIVELY?

Our extensive experience within the construction arena enables our lawyers to understand complex disputes with ease and efficiency. Our in-depth level of expertise means we are able to engage with project teams directly to understand complex construction related conflicts.

 

We have found that advising clients early in the process of their prospects of success, and strengths and weaknesses empowers them to make the best decisions on whether to pursue or defend such disputes.

 

We constantly assess the merits of success to ensure the adjudication platform will best serve our clients’ needs. If this is not the case, we advise on alternatives.

 

Our client’s interests and reputation are our key considerations when advising on prospects of success.