I was recently asked by an adjudicator, nominated by RICS, whether he was "allowed" to adopt the Construction Industry Council’s Low Value Disputes Model Adjudication Procedure (LVD MAP).
He had been appointed to adjudicate a £45,000 dispute involving a single, relatively straightforward issue. The referring party, an SME contractor, had requested that the LVD MAP be used. However, the respondent’s representative, a lawyer from a large firm, objected to this, without providing any explanation for the objection.
The CIC launched the LVD MAP in May 2020 in response to growing concerns - highlighted in a government consultation - about the increasing complexity and prohibitive costs associated with adjudication. Since its introduction, RICS has appointed adjudicators in approximately 800 cases where the LVD MAP has been adopted.
The LVD MAP aims to provide a simple, accessible, and cost-effective procedure for resolving lower-value, non-complex disputes. It is particularly valuable to small businesses dealing with moderate claims and limited access to professional representation. Under the CIC's definition, a low-value dispute is one where the referring party’s claim is less than £100,000 and does not involve multiple or complex issues.
Several Adjudicator Nominating Bodies (ANBs), including RICS, support the LVD MAP. RICS trains its panel of adjudicators in the use of the procedure and encourages its adoption when appropriate. The RICS adjudicator nomination application form includes the following option:
“If you believe this dispute can be determined under the Construction Industry Council Low Value Dispute Model Adjudication Procedure (CIC LVD MAP), and you wish the adjudicator to consider adopting this procedure, please tick the box below.”
Importantly, LVD MAP adjudication is not considered a lesser form of adjudication by RICS, nor is it an alternative to the Scheme for Construction Contracts. It is simply a procedure that may be used within the framework of statutory adjudication under the Housing Grants, Construction and Regeneration Act 1996 ("the Act") and the Scheme.
RICS does not operate separate panels for different types of adjudication. All RICS adjudicators are expected to be capable of handling disputes of varying size and complexity and to use appropriate procedures - including the LVD MAP - where suitable.
RICS charges the same nomination fee regardless of whether the adjudicator adopts the LVD MAP or another procedure.
Legal Framework and Discretion
Under Section 12(b) of the Scheme, adjudicators are required to adopt a procedure that avoids unnecessary expense.
Under Section 13, they are empowered to determine the procedure for each adjudication. This includes the authority to:
- Request any documents reasonably required from either party.
- Obtain and consider such representations and submissions as necessary.
- Set directions on timetables, deadlines, and the length of documents or oral arguments.
- Issue other directions concerning the conduct of the adjudication.
Importantly, the Scheme does not require the respondent's consent for the adjudicator to exercise these powers. An adjudicator, in fulfilling their duty to control costs and ensure both parties have a fair opportunity to present their case, may adopt any procedure they deem appropriate, including the LVD MAP.
Practical Application of the LVD MAP
In practice:
- A referring party may request an adjudicator via RICS and indicate (by ticking the relevant box) that the LVD MAP be considered.
- Alternatively, they may request adoption of the LVD MAP after an adjudicator has been appointed.
- An adjudicator may also choose to adopt the LVD MAP of their own initiative, even if neither party has requested it.
Regardless of how the procedure is introduced, the adjudicator must always remain guided by their obligations under Section 12(b) of the Scheme and the principles of natural justice - adopting a procedure that is appropriate and proportionate to the dispute.
Conclusion
In response to the adjudicator’s question, “Am I allowed to adopt the CIC adjudication procedure for dealing with low-value disputes?” the answer is evident:
Yes - if the adjudicator has been nominated under the Scheme for Construction Contracts Regulations, the CIC LVD MAP is a valid and appropriate procedure that they may adopt at their discretion under Section 13, provided the circumstances justify its use.