Adjudication Costs

If you’re reading this, chances are you’re facing some bumps in the road with a construction project. Whether it’s delays, shoddy workmanship, or unexpected costs, dealing with contractors can be a real headache. But don’t worry, we’re here to help you navigate through the maze, specifically focusing on adjudication – a key process in resolving these disputes.

At Blackstone Solicitors, we pride ourselves on helping clients across England and Wales with their legal needs. Today, we’ll break down what adjudication is, what an adjudicator does, and importantly, the costs involved. So, let’s dive in.

Free Initial Telephone Discussion

For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of  adjudication in construction, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

What is Adjudication?

Adjudication is a quick and relatively informal way to resolve disputes in the construction industry. It’s designed to provide a decision on a dispute within a tight timeframe – usually 28 days. This process is particularly useful in construction projects where time is often of the essence.

Why Choose Adjudication?

There are several reasons why you might choose adjudication over other dispute resolution methods like arbitration or litigation:

1. Speed: Decisions are typically made within 28 days.
2. Cost-Effective: Generally cheaper than going to court.
3. Binding Decisions: While not final, the decisions are binding unless and until revised by arbitration or litigation.
4. Expertise: Adjudicators are usually experts in construction law and practices.

What Does an Adjudicator Do?

An adjudicator acts as a neutral third party who assesses the dispute and makes a decision based on the evidence presented. Their role is somewhat akin to a judge but within a more flexible and expedited framework.

The Adjudication Process

Here’s a brief rundown of the steps involved in the adjudication process:

1. Notice of Adjudication: The process starts when one party serves a notice of adjudication to the other.
2. Appointment of Adjudicator: An adjudicator is appointed, either agreed upon by the parties or by a nominating body.
3. Referral Notice: The referring party submits detailed claims and evidence.
4. Response: The responding party provides their defence and counter-evidence.
5. Adjudicator’s Decision: The adjudicator reviews the submissions and makes a decision within 28 days.

Adjudication Costs: What to Expect

Let’s talk about the nitty-gritty: the costs. Understanding the financial implications is crucial before diving into adjudication.

Types of Costs

1. Adjudicator’s Fees: The main cost in adjudication is the fee charged by the adjudicator. This can vary significantly depending on the complexity of the dispute and the adjudicator’s hourly rate.
2. Legal Fees: While adjudication is less formal than court, having legal representation can still be beneficial. These fees cover preparing the referral notice, responses, and providing general advice.
3. Expert Fees: Sometimes, you may need to bring in experts (like quantity surveyors or engineers) to provide evidence. Their fees can add up depending on the amount of work required.
4. Administrative Costs: These include costs for copying documents, courier services, and other logistical expenses.

How Are Costs Determined?

The adjudicator’s fees are usually based on an hourly rate or a fixed fee agreed upon before the adjudication starts. Legal fees depend on the complexity and duration of the case, and expert fees vary based on the level of expertise and involvement required.

Who Pays the Costs?

This is where things can get a bit tricky. Typically, the adjudicator has the discretion to decide how costs are allocated between the parties. However, each party usually bears their own legal and expert fees. The adjudicator’s fees are often split equally, but in some cases, the losing party might be ordered to cover a larger share.

Can Costs Be Recovered?

One of the burning questions you might have is whether you can recover the costs. While it’s possible, it’s not guaranteed. The adjudicator may decide to award costs against the losing party, but this isn’t always the case. It’s important to go into adjudication with a clear understanding that you might have to bear your own costs.

Reducing Adjudication Costs

While adjudication is generally more cost-effective than other dispute resolution methods, costs can still add up. Here are a few tips to keep them in check:

1. Choose the Right Adjudicator

Selecting an adjudicator who is efficient and has relevant expertise can save you time and money. Their familiarity with similar disputes can streamline the process and lead to a quicker resolution.

2. Be Prepared

The more organised you are, the less time your legal team and the adjudicator will need to spend on your case. Gather all necessary documents, evidence, and statements before starting the process.

3. Clear Communication

Maintain clear and prompt communication with your legal representatives. This helps avoid unnecessary delays and ensures that everyone is on the same page.

4. Limit Scope

If possible, try to narrow down the issues to the most critical ones. Focusing on key disputes rather than tangential issues can reduce the time and costs involved.

Final Thoughts

Adjudication can be a lifesaver when you’re dealing with troublesome contractors and unresolved construction disputes. It offers a faster and often more affordable alternative to traditional litigation. However, it’s essential to go in with your eyes open, understanding the potential costs and the process involved.

At Blackstone Solicitors, we’re here to support you every step of the way. If you’re considering adjudication or simply want to understand your options better, don’t hesitate to reach out. Our team of experienced legal professionals is ready to help you navigate through your construction dispute with ease.

Remember, the right advice at the right time can make all the difference. So, take a deep breath, gather your documents, and let’s get this sorted!

Feel free to contact us at Blackstone Solicitors for further assistance. We’re here to help you achieve a swift and fair resolution to your construction dispute.

How We Can Help

We have a proven track record of helping clients deal with adjudication in construction. We will guide you diligently and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of construction law services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/construction-solicitors/

How to Contact Our Construction Solicitors

It is important for you to be well informed about the issues and possible implications of an adjudication. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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