|
Frequently
Asked
Questions
Adjudication.
What is adjudication?
Who can use adjudication?
Who or what is an adjudicator?
How does adjudication work?
How long does adjudication take?
How much does
adjudication cost?
Arbitration
What
is arbitration?
Who
can
use arbitration?
Who
or what is an arbitrator?
How
does
arbitration work?
How
long does arbitration take?
How much
does arbitration cost?
Adjudication.
What
is Adjudication?
Adjudication
is the dispute mechanism within the Construction Contracts Act 2002
(The CCA).
The parties in dispute use an independent adjudicator to issue a
determination
on their dispute, this determination is binding on the parties.
The
CCA became law in April 2003, and has three aims:
·
To enable regular
payments between parties to a construction contract.
·
To provide a simple
and quick dispute resolution procedure - Adjudication.
·
To provide remedies
for the recovery of money due under a construction contract.
The
CCA applies to all
construction work entered into following April 2003. It
differentiates between
commercial and residential, however both types of construction are
subject to
the provisions of the CCA.
Back
to top
Who
can use adjudication?
It
is
important to realise that you cannot exclude to provisions of the CCA,
therefore anyone who has entered into a construction contract can use
adjudication to resolve their dispute.
You may be
the home owner, developer, contractor or subcontractor.
If you are involved in the building or construction project then the
CCA
applies, and if you enter into a dispute you can use adjudication to
resolve
your dispute.
Adjudication can be used to resolve any dispute under a construction
contract,
however it is only determinations for disputes involving money that are
enforceable by the courts.
To instigate the adjudication process you must issue a notice of
adjudication, from
which you have 5 working days to select an adjudicator. There are 3
ways to
select an adjudicator; either by mutual agreement, by requesting a
nominating
body to select an adjudicator and then the parties agreeing, or by
requesting a
nominating authority to select an adjudicator. Statistics have proven
that
selection by mutual agreement is the prevalent method.
Back to
top
Who
or what is an Adjudicator?
An
Adjudicator is an independant 3rd party who issues a determination on a
construction dispute within 20 - 30 working days of the dispute being
presented
before them.
Anyone can call themselves an adjudicator, therefore it is wise to
select
someone who has under gone training, has experience in construction and
is a
member of a professional institute. This ensures that you have selected
someone
who is qualified to resolve your dispute and who is bound by a legal
and
professional set of ethics.
Back
to top
How
does adjudication work?
The
party instigating the adjudication and bringing a claim is called the
claimant
and the party defending the claim is the respondent.
The parties agree for me to be the adjudicator. They then contact me
and within
2 days I will confirm my availability to act, my appointment is
confirmed on
agreement of my terms.
From appointment the claimant has 5 working days to make their
submission on
the dispute. This submission should be include all the relevant
documentation
required to present their side of the argument. The respondent then has
5
working days to submit there defence, again their submission needs to
include
all relevant information to defend the dispute. Under adjudication
there is no
mechanism for counter claims, they must be dealt with under a separate
dispute.
After the 5 working day period from receipt of the claimant submission
I then
have 20 working days to issue my determination. If the dispute is
financial then
my determination is legally binding and enforceable by the courts.
If you require further information then I can issue a copy of the AMINZ
Adjudication protocol for your information.
Back
to
top
How
long does adjudication take?
Adjudication
is a quick process; If you appoint me as your adjudicator, you can have
a determination
within 30 working days.
Back to
top
How
much does adjudication cost?
All
dispute
processes cost money, adjudication is one of the quickest procedures
available
and compared to litigation is very cost effective. The cost
of resolving
your dispute is dependent on how complicated it is, and the amount of
time
required examining the information prior to issuing my
determination.
The parties are responsible for their own costs, and the cost of the
adjudicator is either split equally or as determined by the adjudicator
between
the parties.
You only pay for the time spent dealing with your dispute, for
confirmation of my hourly rate and terms of engagement please contact
me. I may
request a security or deposit as part of my engagement, if at the end
of the
process there is a surplus from this dispute then this will be refunded.
Back
to
top
Arbitration.
What
is arbitration?
Arbitration
is one of the oldest forms of dispute resolution, and is used
throughout the
world to settle all types of disputes. The arbitration
process is
governed by The Arbitration Act 1996.
Arbitration
is a resolution process where an independent 3rd party - the
Arbitrator -
hears from both parties and then issues an award equivalent to that of
a court
decision.
Arbitration
is private, confidential, flexible, consensual and provides a final and
binding
decision.
All parties will have an equal opportunity to present their case and
the
respondent can bring counter claims as well as defend the disputes
against them.
A hearing can be conducted in private with the process and outcome
being confidential.
During the hearing the parties can present evidence and call witnesses.
The parties
can represent themselves or seek the assistance of someone with
experience in
arbitration to assist them.
Back to top
Who
can
use arbitration?
Anyone
can
use arbitration to resolve their dispute, provided they have an
arbitration
agreement. the agreement can be either verbal or written.
For more information on Arbitration and the process involved contact me
for
more details.
Back
to top
Who
or what is
an arbitrator?
An
Arbitrator is an independent 3rd party who issues an award which is
equivalent
to a decision by the courts.
Anyone can call themselves an arbitrator, therefore it is wise to
select
someone who has under gone training, has experience in the issues
involved in
the dispute and is a member of a professional institute. This ensures
that you
have selected someone who is qualified to resolve your dispute and who
is bound
by a legal and professional set of ethics.
Back
to top
How
does arbitration work?
One
the
parties have agreed to arbitrate and the claimant has issued an
arbitration
notice,, the next step is generally to select an arbitrator. This can
be done a
number of ways however the most common is by mutual agreement.
Following selection and agreement of terms the arbitrator will hold a
preliminary meeting to agree a timetable for the proceedings and to
agree if a
hearing is to be held. if there is not to be a hearing then the parties
can
submit all the relevant documentation to the arbitrator and await the
award.
If there is to be a hearing then the parties need to prepare,
witnesses,
evidence etc. The hearing is generally held in a neutral place and it
is
private and confidential. At the hearing the parties will present
evidence and
can call witnesses. After which based on the evidence presented the
arbitrator
will issue there award.
Back to top
How
long does arbitration take?
The
duration of the preliminary stages, hearing and the time
required to issue
an award is entirely dependent on the dispute and the amount of
evidence
presented, however an arbitrator must ensure that the whole process
including the issue of
the
award is carried out in a reasonable timeframe.
Back
to top
How
much does arbitration cost?
All dispute
processes cost money, the costs of the arbitrator and your own costs
incurred
in the arbitration process can either be allocated by the arbitrator in
their
award or by agreement between the parties. Generally arbitration is a
significantly
more cost effective procedure than litigation.
You only pay for my time spent dealing with your dispute, for
confirmation
of my hourly rate and terms of engagement please contact me. I may
request a
security or deposit as part of my engagement, if at the end of the
process
there is a surplus from this dispute then this will be refunded.
Back
to top
|