What is Adjudication?
Adjudication was developed to allow for construction contract disputes to be resolved on an interim basis more quickly and cost effectively than resolution through arbitration or litigation. In usual circumstances, adjudicators have to render their decision within 28 days from appointment.
The adjudicator's decision is binding unless or until the dispute is finally determined by court proceedings, arbitration or by agreement of the parties via negotiation or mediation. Its objective is to provide a fast working solution to an issue (pending the outcome of, or without the need for, a more formal dispute resolution procedure) so that parties can quickly resume or continue work under the contract.
CEDR has authority to act as an Adjudicator Nominating body (ANB) under the auspices of the Housing Grants Construction and Regeneration Act, 1996 and the Local Democracy, Economic Development & Construction Act 2009 (the Acts). This means that CEDR can nominate an adjudicator from its Panel of Adjudicators when a party to a construction contract issues a referral notice to adjudicate. It also means that CEDR can be named as the appointing authority in construction contracts and parties can agree to adopt the CEDR Rules for Construction Adjudication.
Highlights of CEDR Service
- Free nomination service for adjudications that proceed to a Decision
- Nomination within 1-2 working days
- Experienced high quality adjudicators
- Nomination service managed by experienced ADR Service Professionals
CEDR will endeavour to nominate the most appropriate available adjudicator on a case by case basis. We do not nominate adjudicators from a rota.
When you use CEDR as your ANB, you get a quick, efficient service. Clients choose CEDR to nominate neutrals based upon our wider reputation as ADR specialists, but also for the fact that we guarantee to nominate one of our well respected adjudicators within 48 hours of receipt of the referral and in more than 75% of cases we can nominate in less than 24 hours.
CEDR do not charge a fee for nominations that result in the publication of an adjudicators decision, instantly saving the parties up to £500. However, should the adjudication settle or be discontinued prior to the publication of a decision, CEDR would charge the referring party an administration fee of £250.00+VAT to cover our costs.
The majority of adjudicators on the CEDR Panel charge between £125 and £300 per hour. However, very high value or complex adjudications may require the services of adjudicators who charge considerably higher fees. The Adjudicators hourly rate for conducting the adjudication is agreed by the adjudicator directly with the parties following nomination by CEDR. They will also provide the parties with details of their terms and conditions.
The CEDR Construction Adjudication Service is administered by CEDR's Director of Dispute Resolution Servcices, John Munton. John has over 25 years' experience of construction industry dispute resolution and was the Senior Clerk at Keating Chambers, one of the U.K.'s leading specialist construction law Chambers, before he joined CEDR. John is always happy to discuss the process and share his experience with potential users of the CEDR Nomination Service.
Our nomination process begins upon receipt of the on-line referral form and a copy of the Adjudication Notice. CEDR will evaluate the information provided and nominate the most appropriate member of the Adjudication Panel having established their availability to act.
Applying to CEDR for the nomination of an adjudicator
When applying for the nomination of an adjudicator under “The Scheme for Construction Contracts” (the Scheme) please note the following points in relation to the time restrictions laid down by the Scheme Regulations relating to the referral notice:
1. The referring party must notify the responding party with the Notice of Adjudication in accordance with the Regulations;
i. Any party to a construction contract (the “referring party”) may give written notice of their intention to refer any dispute arising under the contract to adjudication (the “Notice of Adjudication”), hereafter “the Notice”.
ii. The Notice shall be given to every party to the contract.
iii. The Notice shall set out briefly –
- The nature and a brief description of the dispute and of parties involved.
- Details of where and when the dispute has arisen.
- The nature of the redress which is sought, and
- The names and addresses of the parties to the contract (including, where appropriate, the addresses which the parties have specified for the giving of notices).
3. Where an adjudicator has been selected in accordance with paragraphs 1 and 2, the referring party shall, not later than seven days of the Notice of Adjudication, refer the dispute in writing (the ‘referral Notice') to the adjudicator.