In the event that a construction disputes arise, you likely want to reach a quick resolution and get the project moving again.
Whether the dispute is caused by delays, quality issues, payment or other contractual breaches, it’s important that you resolve the dispute by asserting your contractual rights. However, doing this through litigation is often expensive and time-consuming.
In fact, many Courts will now recommend alternative dispute resolution (ADR) prior to commencing litigation proceedings such as:
- Mediation
- Arbitration
- Adjudication
While each have their own merits and drawbacks, adjudication is a popular choice to resolve commercial construction disputes for the following reasons:
- Generally faster than arbitration;
- Temporarily binding until determined by arbitration or litigation;
- Overseen by an expert in the field;
- More formal than mediation.
Is adjudication right for my dispute?
Adjudication is used in disputes where a resolution cannot be achieved through mediation or informal negotiations between the parties – but where litigation is not worth the cost and time.
Unless your dispute is particularly complex or high value, you may wish to engage in adjudication as an alternative to formal litigation.
What is the adjudication process like?
Adjudication is the process by which an expert in a relevant sector hears the facts of the dispute, considers the contract, the responsibilities and rights of each party, and reaches a judgement on the dispute.
It generally follows a set pattern of:
- Notification – The instigating party must notify the other party that they are seeking resolution by adjudication, which may be outlined in the contract
- Appointment – An independent adjudicator will be appointed, either between the parties or by a governing body as outlined in the contract
- Referral – The adjudicator will refer the dispute to adjudication
- Response – The other party will need to respond to the notification, typically within seven days of referral
- Evidence – Each party will present its evidence and the matter will be heard by the adjudicator
- Ruling – The adjudicator will make a ruling on the matter, creating a binding judgement until or unless it is dismissed by litigation or arbitration.
It creates a formalised but straightforward process to bring disputes to an end with the input of an expert – and without the cost and time of Court proceedings.
If you think adjudication could be the key to solving your dispute, it’s time to seek advice on your next steps.
Contact us today for more information.