Are there alternatives to Adjudication?

Sometimes Adjudication may not be the most effective solution to resolve your dispute. How else could you proceed?

For the majority of construction disputes Adjudication delivers a speedy, if rough and ready, solution to resolve disputes. However there are alternatives that may be more commercially sensible on occasion. Your ability to use them may be limited by what is agreed in the contract (and whether it meets the requirements of the Construction Act).

1. Arbitration

Arbitration was a common recourse in the Construction Industry for many years, allowing disputes to be resolved by knowledgeable legal and construction experts.

Partiers may only enter into Arbitration by consensus (e.g. by the incorporation of an arbitration procedure within the Construction Contract). Alternatively, the parties may agree that the best way to resolve a dispute is by Arbitration and the rules of that procedure are entered into post contract. For many, a key advantage to arbitration is that it is a procedure held in private.

2. Mediation

Mediation is an effective way of resolving disputes without the need to go to an imposed decision (e.g. Adjudication or Litigation). The independent mediator aims to help both sides come to an agreement. It is also a voluntary process meaning that both parties must agree and be willing to negotiate to reach a settlement. It is a confidential process where the terms of discussion are not disclosed to any party outside the mediation hearing.

If parties are unable to reach agreement, they can still go to court. Details about what went on at the mediation will not be disclosed or used at a court hearing.