This paper looks at the introduction of statutory adjudication in meeting the objective of Sir Michael Latham in quick dispute settlement solving cash-flow problems.
What improvements can be made to enhance the effectiveness of construction adjudication?
In view of financial and cash-flow difficulties within the construction industry in the late 1980s and early 1990s, and an increase in lengthy construction disputes, Sir Michael Latham, in his report Constructing the Team, recommended that there should be a system of adjudication to be introduced within Standard Forms of Contract underpinned by legislation. His intention was that there should be no restrictions on the issues permitted to be referred to an adjudicator, conciliator or mediator, this can either be included in the main contract or subcontract. Sir Michael Latham also suggested that an adjudicator’s award should be implemented immediately; the use of stakeholders should only be permitted if all the parties agree or if the adjudicator directs to do so.
Further appeals to arbitration or courts should only happen after practical completion. The implementation of the award should not be delayed, unless an exceptional issue arises for the courts where a party refuses to implement the award of an adjudicator. It was recommended that the courts may support the system of adjudication by agreeing to expedite procedures for interim payments.
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