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Common Queries
- What is Adjudication?
- What is Adjudication.co.uk?
- Which industries are affected?
- What disputes can be adjudicated?
- Who pays for the adjudication?
- What is the Scheme for Construction
Contracts?
- When is the Decision given ?
- How is the Decision enforced ?
- Adjudication is a statutory procedure by which any party to a
construction contract has a right to have a dispute decided by an
adjudicator
- It is intended to be quicker and more cost effective than
litigation or arbitration
- It is normally used to ensure payment (although most types of
dispute can be adjudicated)
- The Adjudicator must generally decide the dispute in less
than
42 days
- The decision is binding and is usually upheld by the Courts.
adjudication.co.uk
has been formed to promote the development of
adjudication as a means for resolving disputes quickly and cost
effectively.
Members of the Committee and
their firms can provide the full range of adjudication
services including nomination, advice to the parties and
assistance to the adjudicator.
The scope of adjudication is set out in the provisions of the Housing
Grants, Construction and Regeneration Act 1996. It applies
to contracts concerning:
- The Construction Industry
- The Telecommunications Industry
- Installation of Security Systems
It also includes contracts for professional services within the
above.
The scope of adjudication is set out in the provisions of the Housing
Grants, Construction and Regeneration Act 1996. It applies
to Construction Contracts entered into after 1 May 1998.
This depends on the terms of the contract. Most standard form
contracts and adjudication rules provide that the parties cannot
recover their own costs in the adjudication. Neither party can
claim any fees incurred by lawyers, experts or anyone else who helps
prepare his case. Both parties are jointly and severally liable for
the adjudicator’s fees. In common with the Scheme,
standard forms usually provide that the adjudicator can decide who is
to pay his fees and reasonable expenses by apportionment between the
parties in his decision.
Usually, the successful party is not required to pay the
adjudicator’s fees but should an unsuccessful party refuse to pay
the adjudicator’s fee he can lawfully claim the fee from the
successful party. The Scheme is silent on the parties' own costs.
It has now been decided that although there is no implied term that
the adjudicator may decide on payment of the parties costs, he can be
given the power to do so in the adjudication, e.g. by both parties
claiming their costs.
The Housing Grants, Construction and Regeneration Act provides, at
Section 108 of Part II, that a Construction Contract must embody
eight principles concerning the right to adjudication. If the
contract does not comply with Section 108 then any adjudication
provisions in the Contract (with the exception of the naming of an
adjudicator or adjudicator nominating body) are ignored and the
Scheme applies.
The Scheme for Construction Contracts is a set of
rules which includes all eight principles and will automatically apply to
any Construction Contract which omits even one of these. The Standard
forms of contract generally include all of the principles. The
Scheme will therefore usually apply to non standard forms or ad-hoc
agreements, provided they are at least evidenced in writing and fit
the description of a Construction Contract contained in the HGCRA.
The Adjudicator must give his decision within 28 days of the
referral, extended to 42 days with the agreement of the referring
party and extended to any period by agreement between the parties.
The Adjudicator's Decision is binding on the parties until the
dispute is finally decided by arbitration (if provided for in the
contract or agreed to), litigation or agreement. Because it is
binding the Courts will enforce the decision in summary proceedings.
Generally the only defence to such proceedings is that the
Adjudicator's decision was made outside his jurisdiction.
The unsuccessful party is required by law to pay a
sum of money awarded by an adjudicator. A period of grace is often
provided for when the Decision is made so as to allow the paying party
to obtain the money. However, if the unsuccessful party does not pay
when required, the successful party may make an application in court
to have the adjudicator’s Decision turned into a court order by
means of summary judgment. Thereafter, continued refusal to pay will
mean that, upon further application to the court, the money may be
directly recovered from bank accounts or a charge levied against
certain assets such as property and shares.
Copyright © 2000-2001 adjudication.co.uk. All rights reserved.
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