Adjudication is under the spotlight, with both the DTI and Sir Michael Latham reviewing the 1998 Construction Act recently, but a survey of the parties of adjudications has revealed broad approval for the process.
Respondents to a survey by JR Knowles said adjudication came at a reasonable financial cost, with 60% saying that it offered overall value for money.
However, Roger Knowles, chairman of JR Knowles, said: “The high cost of the process was a regular comment even from those who finished up on the winning side. Perhaps the time is right for the rules to be changed to allow the adjudicator power to award the parties costs in his or her decision. This would make it less expensive for the winning party but of course add to the financial burden for the loser.”
A significant 69% of parties said they were satisfied with the process. Also, 66% thought adjudication had been “of benefit to their business”. A further 60% said the adjudicator’s decision was “about right” and that they were satisfied with the adjudicator’s performance.
An even greater 78% said they would treat the adjudicator’s decision as final.
Knowles added: “60% of the parties who responded were satisfied with all aspects of the adjudication process. It would be hard to imagine that the same level of satisfaction would be recorded if the survey had taken place in relation to parties who had been involved in litigation or arbitration.”
The firm asked 99 parties (who had referred disputes to adjudication in the past six months) for their views.
Losing parties were less happy with their experience of adjudication, however. Their comments included:
"It would be better if the adjudicator could award costs (other than his own)"
"Very expensive and unjust process which has no finality"
"I have seen better rules and more natural justice in a
pub brawl"
"Too much lawyer involvement with mountains of jurisdictional arguments"
Source
QS News
