Pre-mandatory adjudication, what was the landscape of construction dispute resolution in the UK?
- Contractual adjudication appeared in SOME standard form contracts (NEC etc)
- Some progress had been made with MEDIATION
- SLOW UPTAKE: each party had to agree to take part, adoption was slow and
- ARBITRATION was the dominant option.
What did the ‘Constructing the Team’ report of 1994, lead by Sir Michael Latham, recommend and why?
Adoption of adjudication to
1. provide speedier and cheaper means of resolving construction disputes, underpinned by legislation
2. provide a cash flow remedy during execution of a contract.
3. Avoid cash flow issues suffered by smaller contractors dragged through arbitration. They did not have the funds to enforce contractual provisions.
The resulting legislation imposes a form dispute resolution on the industry. This was in response to the fact that the existing means of dispute resolution was affecting the performance of construction industry as a whole.
What are three pieces of key legislation in respect of adjudication in the UK?
- Housing Grants, Construction and Regeneration Act 1996 (the “1996 Act”)
- Local Democracy, Economic Development & Construction Act 2009 (the “2009 Act”)
- Schemes for Construction Contracts (the “Schemes”)
Key features of adjudication legislation in the UK
- MANDATORY requirements in construction contracts
- PAYMENT PROVISIONS were included
- Statutory right to adjudication with NO OPT-OUT.
Last point was revolutionary with statutory intervention in retreat and with freedom to contract being paramount.
Key dates for a contract to be subject to the 1996 Adjudication Acts in respect of statutory right to adjudication
- 01 May 1998 (I MAY adjudicat8)- For the 1996 Act to apply, a contract must have been made on or after this date.
- For the amendments of the 1996 Act (2009 Act) to apply, a contract must have been signed after:
01 October 2011 (England & Wales) or
01 November 2011 (Scotland)
What are the key provisions of the Schemes for Construction Contracts?
What are the key provisions of the Local Democracy, Economic Development & Construction Act 2009 (the “2009 Act”)
[refine]
What are the key provisions of the 1. Housing Grants, Construction and Regeneration Act 1996 (the “1996 Act”)
Introduced a statutory right to refer a dispute to adjudication.
Opportunity to have their disputes resolved by an industry professional within 28 days
What is the legislation re contracts in writing before and after the 2009 Act?
Before 2009 Act, a contract had to be in writing
The 2009 Act removed this requirement
BUT it is good practise to get terms written down and properly executed.
