Construction Contracts Act 2013 Adjudication: An Overview
The Construction Contracts Act 2013 introduced a new dispute resolution process known as adjudication. Adjudication is a faster and less formal process than traditional court proceedings, which makes it an attractive option for parties involved in construction disputes.
What is Adjudication?
Adjudication is a process where a neutral third party decides on a dispute between two parties. The adjudicator`s decision is binding and enforceable, unlike mediation or other forms of alternative dispute resolution.
Adjudication under the Construction Contracts Act 2013
The Construction Contracts Act 2013 introduced a statutory right to adjudication for parties involved in construction disputes. The Act applies to all construction contracts entered into after 25 July 2016, regardless of whether they are written or oral.
The adjudication process under the Act is designed to be quick and cost-effective, with a maximum time limit of 28 days for the adjudicator to make a decision. The adjudicator is chosen by the parties involved in the dispute, and can be anyone with suitable qualifications and experience.
Once the adjudicator makes a decision, it is binding and enforceable, although it can be challenged in court. The losing party must comply with the adjudicator`s decision even if they disagree with it.
Benefits of Adjudication
Adjudication offers several benefits over traditional court proceedings, including:
1. Speed: Adjudication is designed to be a fast process, with a maximum time limit of 28 days.
2. Cost-effective: Adjudication is generally less expensive than court proceedings.
3. Informal: Adjudication is less formal than court proceedings, which can be intimidating for some parties.
4. Expertise: Adjudicators are chosen for their expertise in the relevant field, which can lead to more informed decisions.
Conclusion
The Construction Contracts Act 2013 introduced an important new dispute resolution process for parties involved in construction disputes. Adjudication offers a fast, cost-effective, and less formal alternative to traditional court proceedings, and is designed to be accessible to all parties. As such, it is an important tool for anyone involved in the construction industry.