27th June 2022
In the construction industry disputes can seriously affect cash flow and potentially the success of a project. The unpaid party could be without funds for a considerable period while the dispute is resolved. Any delay can jeopardise the completion of a project on time and on budget, which can lead to complex disputes regarding payment. If problems occur, disputes need to be resolved as quickly as possible.
According to Tim Newsome of Myers & Co Solicitors, the use of adjudication to resolve a construction contract dispute has a number of benefits, particularly enabling disputes to be resolved quickly to facilitate cash flow and so allowing projects to continue.
If a dispute arises under a construction contract (under the relevant legislation) any party to that contract has a right to refer the dispute to adjudication at any time. The right to adjudicate is statutory; parties cannot contract out of it. A decision is made by an independent third party who is nominated to act as an adjudicator. That decision is temporarily binding until it is finally determined by the parties reaching agreement, or by a judge or arbitrator.
A key benefit of the adjudication process over other forms of dispute resolution is that the process is quick, being designed to take 28 days from the dispute being referred to the adjudicator to the adjudicator’s decision, (although the period may be extended by agreement).
Additionally, the adjudication process is a private and confidential method of dispute resolution, so that parties to a dispute are able to maintain privacy whilst the dispute is resolved.
At Myers & Co, our expert dispute resolution solicitors have in-depth knowledge of the adjudication process and have a high success rate in all forms of alternative dispute resolution. If your dispute cannot be resolved amicably, our solicitors can give you the very best advice and representation at court, including representation in proceedings at the Technology and Construction Court.
For a confidential discussion about adjudication and construction law, contact Tim Newsome at Myers & Co Solicitors, Stoke-on-Trent, Staffordshire, on 01782 525011 or email tim.newsome@myerssolicitors.co.uk.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
