Professional Documents
Culture Documents
Contents
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1 Introduction
2 Advantages and disadvantages
3 Section 108 - key adjudication provisions
5.2 External references
Introduction
Adjudication is often subject to a strict timetable and may be based purely on documentary
submissions (see for example, NEC Engineering and Construction Contract, option
W2).Adjudicators can adopt an inquisitorial role which may involve taking the initiative in ascertaining
facts and law.
Adjudication decisions are binding unless and until they are revised by arbitration or litigation. There is
no right of appeal and limited right to resist enforcement. Award of legal costs is at the discretion of
the adjudicator unless this is excluded by the terms of the contract. Based on decision and written
information received from both parties, the whole process can take up to 28 days and the decisions
are binding.
If the parties do not agree procedural rules which comply with the Housing Grants, Construction and
Regeneration Act then the Act imposes the rules set out in the Scheme for Construction Contracts.
Advantages:
The parties can select the expert or the characteristics of the expert.
The expert can act as an investigator.
Seldom lengthy oral arguments or legal submissions.
No cross examination or formal evidence.
Streamlined, speedy and flexible procedures as agreed between the parties.
Less expensive.
Disadvantages:
Section 108 - key adjudication provisions
Section 108 of the Act
Notice
Appointment
Selection of an adjudicator by a body must be communicated to the parties within five days of
referral.
The selected adjudicator has two days to decide whether he is willing to act.
This person must not be an employee of a party to the dispute.
Once appointed, the referring party must serve notice on the adjudicator, accompanied by
copies of all documents on which that party intends to rely.
Copies of this notice and documents are sent to all other parties in the dispute.
Related disputes
Objection to adjudicator
Powers of adjudicator
To open up, revise and review certificates unless the contract provides that they are final and
conclusive.
To decide and order payment of sums due under the contract.
To decide whether interest should be paid.
Arbitration v Adjudication
Arbitration is a procedure in which both sides agree to let an impartial third party, the arbitrator, decide
the case. The arbitrator may be a lawyer, or may be an expert in the field of thedispute, or in some
cases, an arbitration panel. The arbitrator’s decision, known as an award, is legally binding and can
be enforced through the courts. Normally, there is no appeal, however there are exceptions in which
appeals may be accepted. Arbitrators have the power to ascertain facts rather than just listen to
submissions, and to order costs.