Parties to certain contracts for work undertaken in the UK now find mandatory stipulations about dispute resolution and payment
provisions are included by the 'Construction Act' in their contracts -
whether they know
it or not, whether they want it or not !!
My appointments as Adjudicator to date
concern a number of contracts in :
- Wastewater Treatment (mechanical/process)
- Wastewater Treatment (electrical/control)
- Power Generation (civil & mech. demolition)
- Power Generation (process subcontract)
- Combined Heat & Power Plants
- Waste Incineration & Power Generation
- Furnace Controls & Cabling
- Water Treatment Plant installation
- Process Plants
- Engineering & Building Services
|
Information about the UK Housing Grants, Construction & Regeneration Act 1996 :
The Act imposes contractual terms on the
parties to applicable contracts. Its scope is much broader than many organisations
have so far appreciated and the contractual positions of the parties can be significantly
affected by the provisions of the Act.
The concept of adjudication
is that either party can choose to submit a dispute to the decision of an adjudicator who is obliged to give a decision within as short a
period as 28 days. The adjudicator's decision is ' temporarily binding ' and must be
carried out. Subsequent litigation (or arbitration) could overturn that decision - but
meanwhile the adjudicator's decision must be implemented.
The payment provisions
require there to be stage payments for other than very short-term contracts and 'pay when
paid' clauses are rendered completely ineffective - save for one special circumstance. Any
intention of withholding payment due must be preceded by proper notification - else the
withholding of payment contravenes the Act.
Finally, it should be noted :
The parties CANNOT contract-out of the provisions of the
Act.
Adjudication : Questions
& Answers
| So where is the complication ? |
There is no complication. |
| Does it only apply to contracts for
building and construction work ? |
No - it has a wide application and includes some mechanical,
electrical and process contracts. But you need to check the Act or take advice on its
scope. |
| So do we need to get our lawyers
involved in setting it up ? |
You can of course use lawyers to arrange for this.
Equally the parties can either choose an Adjudicator themselves or apply to
an Adjudicator Nominating Body to appoint one. |
| Where do we find an Adjudicator
Nominating Body ? |
See my 'Contact & Links' page for the link to the DETR
list. |
| So what is special about adjudication ? |
It provides a really fast-track way of getting a dispute
settled so that, for example, the parties can proceed with the contract without further
rancour. |
| So does adjudication finally settle the dispute
? |
The parties can decide to abide by the Adjudicator's decision
and agree that the dispute stays settled - but if one party is not satisfied with the
decision he can take his dispute to litigation or arbitration for final settlement.
However meanwhile the Adjudicator's decision must be implemented. |
More than seventy court judgments have
been made since February 1999.
All have advanced the subject of adjudication under the 'Construction Act'.
For texts of judgments try this website
: Adjudication.co.uk
If you have further questions on
adjudication -
please go to Contractual Corner.