Construction Law: When is it right to adjudicate?

Summary

In this informative video, Alice Toop, an associate solicitor at Steele Raymond, discusses key considerations for businesses contemplating adjudication in construction disputes. She outlines five critical points: establishing the right to adjudicate, ensuring the dispute has crystallized, assessing the appropriateness of adjudication for complex disputes, complying with procedural rules, and clearly defining the dispute in the notice of adjudication. These considerations are essential for effectively navigating the adjudication process, allowing parties to resolve disputes efficiently while adhering to contractual obligations.

Takeaways

• 😀 Understanding adjudication can significantly benefit businesses in resolving construction disputes.
• 📜 Before initiating adjudication, confirm that you have the contractual right to do so.
• 🤝 Some contracts, like the JCT Industry Standard Contract, may require considering mediation before adjudication.
• ✉️ Ensure the dispute has crystallized by formally communicating the claim and desired resolution to the other party.
• ⚖️ Assess whether adjudication is suitable for your dispute, especially if it is complex or extensive.
• ⏳ Adjudication typically has a quick resolution time of around 28 days, which may not suit all disputes.
• 📚 Familiarize yourself with the procedural rules governing your adjudication, often detailed in the construction contract.
• ✅ Compliance with procedural rules, including time limits, is crucial from the outset of the adjudication process.
• 📝 Clearly define the issues in dispute in the notice of adjudication to ensure they are addressed during the process.
• 🚀 Careful consideration of these factors is essential before sending the notice of adjudication to the other party.

Q & A

What is the primary focus of Alice Toop's discussion?

Alice Toop discusses the adjudication process in construction disputes and how it can benefit businesses.

What is the first step one must take when considering adjudication?

The first step is to establish the right to refer the dispute to adjudication, as some contracts may require consideration of other dispute resolution methods first.

What does it mean for a dispute to be 'crystallised'?

A dispute is 'crystallised' when the claimant has formally communicated the basis of their claim and what they are seeking to the other party.

When might adjudication not be appropriate for a dispute?

Adjudication may not be appropriate for very large or complex disputes, as its process is typically quick, usually lasting only 28 days.

What procedural rules must be considered in the adjudication process?

The procedural rules that govern the adjudication process may be outlined in the construction contract, and compliance with these rules, including any time limits, is essential.

What is the significance of defining the dispute in the notice of adjudication?

Clearly defining the dispute in the notice of adjudication is crucial to ensure that all relevant issues are addressed during the adjudication process.

What alternative dispute resolution method is mentioned in relation to adjudication?

Mediation is mentioned as an alternative dispute resolution method that parties may be required to consider before proceeding to adjudication, particularly under the JCT Industry Standard Contract.

How does the adjudication process typically begin?

The adjudication process begins with the drafting and sending of a notice of adjudication to the other party or parties involved in the dispute.

What can happen if the time limits set out in the adjudication rules are not complied with?

Failure to comply with time limits in the adjudication rules can jeopardize the adjudication process and potentially weaken a party's position.

What should parties do before kicking off the adjudication process?

Parties should carefully consider all the outlined points, including the right to adjudicate, the crystallisation of the dispute, and whether adjudication is appropriate for their situation.