RICS leads changes to help small construction firms resolve disputes cheaply and quickly

10 May 2023

The Construction Industry Council (CIC) has updated its model procedure for adjudication of small to medium size contract disputes. The second edition of the CIC Low Value Disputes Model Adjudication Procedure (LVD MAP) was drafted by a working group, which included chartered surveyor, Peter Vinden (Gately Vinden), lawyer Christian Charles (Fladgate LLP) and RICS’ Head of ADR R&D, Martin Burns, who chaired the group.

The LVD MAP was initially launched in 2020 and has proven to be popular with SMEs, many of which would otherwise have found adjudication prohibitively costly and complex. The updates to the procedure include reducing the adjudicator’s capped fee from £6,000 to £5,000 and raising the threshold value of disputes where the procedure can be used from £50,000 to £100,000. The overall objective is to enable more SMEs to engage with adjudication as a means to resolve their disputes in a cost effective and efficient manner. Another key update is clarification that adjudicators are able to draw on their authority under the Construction Act and Regulations to decide whether or not to adopt the procedure, and that they do not require both parties to agree. This will be particularly welcome news to SME firms in the construction and engineering sectors, many of which have felt disenfranchised from adjudication.

RICS has appointed adjudicators in over 300 low value cases since the initial launch of the LVD MAP in May 2020. The revisions in the 2^nd edition are expected to lead to a marked increase in individuals and businesses using the procedure.

RICS Head of ADR Research and Development, Martin Burns, said: “Since its initial launch in May 2020, the CIC procedure for low value disputes has been adopted by hundreds of SMEs to resolve their disputes. This second edition is more concise and accessible, and will provide opportunities for many more parties involved in construction contract disputes to have them resolved quickly and cost effectively.”

For more information on RICS adjudication services, please visit our website: Adjudication Services (rics.org)

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