C9Part II Construction contracts

Annotations:
Modifications etc. (not altering text)

Adjudication

I1C1C2C3C4C5C6C7C8108 Right to refer disputes to adjudication.

1

A party to a construction contract has the right to refer a dispute arising under the contract for adjudication under a procedure complying with this section.

For this purpose “dispute” includes any difference.

2

The contract shall F1include provision in writing so as to —

a

enable a party to give notice at any time of his intention to refer a dispute to adjudication;

b

provide a timetable with the object of securing the appointment of the adjudicator and referral of the dispute to him within 7 days of such notice;

c

require the adjudicator to reach a decision within 28 days of referral or such longer period as is agreed by the parties after the dispute has been referred;

d

allow the adjudicator to extend the period of 28 days by up to 14 days, with the consent of the party by whom the dispute was referred;

e

impose a duty on the adjudicator to act impartially; and

f

enable the adjudicator to take the initiative in ascertaining the facts and the law.

3

The contract shall provide F3in writing that the decision of the adjudicator is binding until the dispute is finally determined by legal proceedings, by arbitration (if the contract provides for arbitration or the parties otherwise agree to arbitration) or by agreement.

The parties may agree to accept the decision of the adjudicator as finally determining the dispute.

F23A

The contract shall include provision in writing permitting the adjudicator to correct his decision so as to remove a clerical or typographical error arising by accident or omission.

4

The contract shall also provide F3in writing that the adjudicator is not liable for anything done or omitted in the discharge or purported discharge of his functions as adjudicator unless the act or omission is in bad faith, and that any employee or agent of the adjudicator is similarly protected from liability.

5

If the contract does not comply with the requirements of subsections (1) to (4), the adjudication provisions of the Scheme for Construction Contracts apply.

6

For England and Wales, the Scheme may apply the provisions of the M1Arbitration Act 1996 with such adaptations and modifications as appear to the Minister making the scheme to be appropriate.

For Scotland, the Scheme may include provision conferring powers on courts in relation to adjudication and provision relating to the enforcement of the adjudicator’s decision.