Statutory adjudication is a method of construction dispute resolution in several English-speaking jurisdictions, such as England and Wales, Scotland, New South Wales, Singapore, and Ireland. In contrast to contractual adjudication, it is not necessary to agree upon this procedure in a contract but it applies mandatorily, and the parties are not able to opt out of it. The wave of statutory adjudication started in the UK with the Housing Grants, Construction and Regeneration Act 1996. It is a very swift procedure, typically 28 days. Often described as a pay first, argue later mechanism to solve disputes, it is designed to protect small businesses from the risk of insolvency by protecting their cash flow. While the losing party may succeed in reversing the adjudicator’s decision by suing the other party in front of state courts, or by commencing arbitral proceedings, as the case may be, anecdotal evidence suggests that 80 to 90 % of adjudication decisions are accepted by the losing party.
BODENHEIMER HERZBERG have successfully represented several clients in statutory adjudication proceedings.
BODENHEIMER HERZBERG REPRESENTATIVE MATTERS AS PARTIES’ COUNSEL
Represented a German supplier of building materials in statutory adjudication proceedings against an English employer under the UK Housing Grants, Construction and Regeneration Act 1996
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