and is the determination of a dispute and/ or difference within a 28-day period (or 42 days as agreed by the Referring Party (or Claimant) or such other timescales as agreed by the Referring Party and the Responding Party (the Respondent). The adjudication process can be either statutory (HGCRA 1996) or contractual and is conducted by a third-party neutral, who is nominated either by the parties (by joint agreement) or as nominated by the Adjudicator Nominating Body (ANB). The adjudicator is generally requested to have a particular background, experience, and skills to resolve the dispute. For example, in the event the dispute regarded defective works, it may be beneficial for the adjudicator to have an architectural background, whereas, for a quantum dispute (such as the valuation of a variation or loss and/ or expense claim), it would likely be beneficial for the adjudicator to have a background and qualifications in quantity surveying. Adjudication allows a party to refer a dispute and/ or difference for determination at any time, allowing issues to be resolved quickly and if necessary, during the course of the works – this allows for a temporary binding decision, with the losing party paying first and arguing in a more formal setting (such as litigation or arbitration) at a later stage. Adjudication is supported by the courts, and the conclusion in the Latham Report was that the system of adjudication ‘must become the key to settling disputes in the construction industry’. What are the benefits of construction adjudication? Construction adjudication offers several benefits to parties involved in construction disputes, contributing to the efficient resolution of conflicts and the successful completion of projects. Firstly, adjudication provides a swift and cost-effective means of resolving disputes. Unlike traditional litigation, which can be protracted and costly, adjudication proceedings are typically expedited, with strict timelines for the submission of evidence and the rendering of decisions. This allows parties to obtain a resolution in a timely manner, minimizing delays and disruptions to the construction process. Secondly, construction adjudication offers a flexible and adaptable approach to dispute resolution. The process can be tailored to suit the specific needs and circumstances of each dispute, allowing parties to choose adjudicators with relevant expertise and experience in the construction industry. Additionally, adjudication allows for the consideration of technical and complex issues by knowledgeable professionals, ensuring that disputes are resolved effectively and on their merits. Thirdly, adjudication promotes transparency and fairness in the resolution of disputes. Adjudicators are required to act impartially and make decisions based on the evidence presented by the parties without bias or prejudice. This helps to instil confidence in the integrity of the process and the fairness of the outcome, fostering trust and cooperation among stakeholders. Furthermore, construction adjudication can help to preserve ongoing business relationships between parties involved in construction projects. By providing a structured and formal mechanism for resolving disputes, adjudication enables parties to address their grievances in a constructive and professional manner without resorting to acrimonious litigation. This can help to maintain positive working relationships and facilitate the successful completion of projects, benefiting all parties involved. In conclusion, construction adjudication offers numerous benefits, including speed, cost-effectiveness, flexibility, transparency, and the preservation of business relationships. By providing a fair and efficient means of resolving disputes, adjudication contributes to the overall success and viability of construction projects, helping to ensure their timely completion and the satisfaction of all parties involved. What are the costs for construction adjudication? Parties are liable for the costs and expenses of preparing their case. They may, however, following the issue of the Notice of Adjudication and by agreement (in writing), confer power on the adjudicator to award party costs. Depending on the size and complexity of the case, each party may instruct their own counsel and experts. However, adjudication was designed so that a party could prepare their own case and self-represent without external legal assistance. Given the size and complexity of construction disputes, combined with the complexities of competing arguments and case law, WWW.LAWYER-MONTHLY.COM 7 A very common dispute and/or difference is the validity of payment applications/notices and pay-less notices, which are commonly known within the sector as “smash and grabs.”
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