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  • Advisory Note: Adjudication as Alternative Dispute Resolution Process
19 Jun
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JBCC  A/N 2023  :  ADJUDICATION AS ALTERNATIVE DISPUTE RESOLUTION PROCESS

 

Adjudication, as an alternative dispute resolution process, had first been introduced in the UK through the Housing Grants Construction and Regeneration Act of 1996 following Sir Michael Latham’s 1994 ‘Constructing the Team’ report. The Act created an accelerated process for deciding disputes, one that provides that an adjudicator’s decision may be rejected and submitted to arbitration, but is provisionally binding on the parties unless and until overturned in the subsequent arbitration. This process was adopted in many commonwealth countries and enforced by legislation in some of them. In common law jurisdictions where there is no statutory right to adjudicate (such as South Africa), a right can be introduced by way of contractual terms (see extract from clause 30.0 in the JBCC Principal Building Agreement above). In the UK decision of Carillon Construction Ltd v Davenport Royal Dock Yard, the court explained that the purpose of adjudication was to introduce a speedy mechanism for settling disputes in construction contracts on a provisional basis and requiring the decisions of adjudicators to be enforced pending final determination of disputes by arbitration, litigation, or agreement. The court went on to say that even errors of procedure, fact or law by an adjudicator do not constitute a defence to the enforcement of the adjudicator’s decision

 

read the full article here.

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