Commercial dispute resolution: adjudication
Adjudication is a popular method of commercial dispute resolution, often used in the construction industry.
The courts actively encourage adjudication, as they do with other forms of alternative dispute resolution. It is commonly used in the construction industry.
Parties to construction contracts have rights under the law to refer a dispute arising under a construction contract to adjudication. Neither party can exclude the right to refer a dispute, under certain contracts, to adjudication.
A qualified adjudicator will hear the case and decide within 28 days. That decision is binding temporarily, but either party may then refer the dispute for determination by arbitration or litigation.
To enforce an adjudicator's judgment, the claimant must apply to the High Court to recover and enforce the award. The adjudicator has a duty to act impartially, adopt fair procedures and give proper and balanced consideration to both parties. The only grounds available to contest the High Court's enforcement of an adjudicator's decision will be to challenge the jurisdiction of the adjudicator or the manner in which the adjudication was conducted.
The parties will respectively pay their own costs, and the adjudicator will decide which party should pay its fees and expenses.
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