8 LAWYER MONTHLY MAY 2024 it is not common for this to happen, with parties generally appointing legal assistance. The parties are jointly and severally liable for the adjudicator’s costs and expenses. Adjudicator rates can vary, however, and are commonly between £300 to £450 per hour, depending on experience and qualifications. Generally, the policy adopted is that ‘costs follow the event’ and may be adjusted depending on a party’s success. In most cases, it would be foreseeable that the unsuccessful party would be liable for most, if not all, of the adjudicator’s fees and expenses. What is the process for construction adjudication? The adjudication process commences with the issue of the Notice of Adjudication of the Referring Party. This Notice is served to the other contracting party, the Responding Party. The Notice sets out the nature of the dispute and/ or difference and the redress sought. The parties can, by joint agreement, name and nominate an adjudicator. However, it is generally difficult to reach an agreement once the parties are locked in a dispute. The contract generally provides for an ANB (Adjudicator Nominating Body) (such as CIArb, RICS, UKA, TeCSA), where the Referring Party then seeks adjudicator nomination from the relevant ANB stated in the Contract. Once an adjudicator is nominated, the Referring Party issues their Referral (and within seven days of the Notice of Adjudication), which then cloaks the adjudicator with the power to act and issue directions. The issue of the Referral also starts the clock of the 28day process (or otherwise extended). The Referral is the Referring Party’s statement of case and is generally supported with appendices comprising expert reports, witness statements, and other such evidence as required in relation to the dispute. The Responding Party then is generally directed by the adjudicator to prepare and serve their defence – the Response. This, again, Construction adjudication can help to preserve ongoing business relationships between parties involved in construction projects.
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