- Research suggests that fast-track binding adjudication, based on the Construction Act model, would be welcomed by those involved in the management of complex modern contracts.
Statutory adjudication for parties to construction contracts (who cannot contract out of the scheme) came into force in 1998 under the Housing Grants, Construction and Regeneration Act 1996 (HGRA 1996). It provides temporary finality in a 28-day procedure, acts as a ‘pay first, argue later’ mechanism, and is designed to protect the cash flow of often thinly capitalised parties. Other, non-statutory, schemes include those managed by the Society for Computers and Law, the Tenancy Deposit Adjudication Scheme, the Professional Negligence Bar Association scheme and the Centre for Effective Dispute Resolution’s scheme (the rules of which provide for a decision to be made based on written submissions within 28 days of a referral).
I suggest that statutory adjudication, based on the HGRA 1996 model, be made available for all non-consumer contracts (excluding finance sector contracts).
