Adjudication provides a quick and inexpensive solution to many disputes arising under a construction contract. It is designed to produce a remedy during the process of a construction project to avoid the problem of long court litigation, which many sub-contractors and small construction companies are unable to afford.
Adjudication is appropriate for resolving financial disputes relating to delay and disruption claims, extension of time claims, final accounts disputes and can be particularly helpful in sorting out disputes on interim applications. Although it has been available since 1998, many contractors still have not taken advantage of the benefits offered by the adjudication procedure.
The legal right to adjudicate is a right that the parties cannot contract out of. A party to a construction contract has the right to refer a dispute to adjudication at any time. The Adjudicators decisions are also binding on the parties until the dispute is finally determined by legal proceedings, by arbitration or by agreement.
There are many benefits of adjudication:
- Quick– disputes are resolved in 6-8 weeks of the appointment of an adjudicator
- Inexpensive– adjudication is far less costly than either court proceedings or arbitration proceeding
- Less risky than arbitration or court – unless the parties have agreed otherwise, each party nears its own costs in adjudication and the losing party cannot be ordered to pay the winners costs
- It does not bring the contract to an end– work will continue on the contract whilst the adjudication proceeds so that the sub contractor is not going to lose the opportunity of completing the contract simply because he has asked an adjudicator to resolve a dispute
- Flexibility – the scope of arbitration has extended beyond payment disputes arising during the course of the project, to include disputes relating to breach of contract and termination issues often arising after completion
It must be borne in mind that the costs of adjudication cannot be recovered from their opponent even if the adjudication is successful.
Our solicitors have significant experience in all aspects of construction, particularly in disputes. We regularly act for clients in adjudication, arbitration, court litigation and mediations, and are often prepared to act on a no win, no fee basis.
Please contact us today for a free no-obligation telephone discussion by calling us on one of the two telephone numbers at the top of this page, or by email: email@example.com