Construction Adjudication, Second Edition

420 Pages·2004·3.599 MB·English

by  John L. Riches, Christopher Dancaster(auth.)

Construction
Adjudication
Construction
Adjudication
Second Edition
John L. Riches
and
Christopher Dancaster
#1999,2004JohnRichesandChristopherDancaster
BlackwellPublishing,
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Firstpublished1999byLLPReferencePublishing
Secondeditionpublished2004byBlackwellPublishing
LibraryofCongressCataloging-in-PublicationData
Riches,JohnL.
Constructionadjudication/JohnRiches&ChristopherDancaster.–2nded.
p. cm.
Rev.ed.of:Constructionadjudication/RobertStevensonandPeterChapman.1999.
Includesbibliographicalreferencesandindex.
ISBN1-4051-0635-2(hardback:alk.paper)
1. Constructioncontracts–GreatBritain. 2.Arbitrationandaward–GreatBritain. 1.Dancaster,
Christopher. Title.
KD1641.S75 2004
343.41’078624–dc22
2004000879
ISBN1-4051-0635-2
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Contents
Preface xiv
Acknowledgements xvi
1 Whatisadjudication? 1
GeneralIntroduction 1
Terminology 1
Before1May1998 2
After1May1998Newadjudication–‘SeaChange’or‘Hurricane’? 3
Reviewandconsultation 4
Trainingandqualityofadjudicators 5
Advice 6
Therestoftheworld 6
Publicorprivatelaw? 6
Adjudicationdefined 7
Isadjudicationajudicialprocess? 13
Comparisonofadjudicationwithotherformsofdisputeresolution 14
Mediationandconciliation 15
Expertdetermination 15
Arbitration 15
Litigation 16
Theobligationsplacedupontheadjudicator 17
Thepowersoftheadjudicator 17
Possibleliabilitiesoftheadjudicator 18
Whatpersonalqualitiesshouldtheadjudicatorhave? 18
Summary 19
2 TheAct:TheOverarchingProvisions 20
Section104:Constructioncontracts 20
Section104(1) 20
Section104(2) 21
Section104(3) 22
Section104(4) 22
Section104(5) 23
Section104(6)(a) 24
Section104(6)(b)and(7) 24
Section105:Meaningof‘constructionoperations’ 25
Section105(1)(a) 25
Section105(1)(b) 26
Section105(1)(c) 26
Section105(1)(d) 27
Section105(1)(e) 27
vi Contents
Section105(1)(f) 28
Section105(2)(a) 28
Section105(2)(b) 28
Section105(2)(c) 28
Section105(2)(d) 30
Section105(2(e) 31
Section105(3)and(4) 31
Section106:Provisionsnotapplicabletocontractwithresidentialoccupier 31
Section106(1) 31
Section106(2) 32
Section106(3)and(4) 33
Section107:Provisionsapplicableonlytoagreementsinwriting 33
Section107(1) 33
Section107(2) 34
Section107(3) 37
Section107(4) 38
Section107(5) 39
Section107(6) 40
Thesupplementaryprovisions 40
Section114:TheSchemeforConstructionContracts 40
Section114(1) 40
Section114(2) 40
Section114(3)and(4) 41
Section114(5) 41
Section115;Serviceofnotices,&c. 41
Section115(1) 41
Section115(2)-(4) 41
Section115(5) 42
Section115(6) 42
Section116:Reckoningperiodsoftime 42
Section116(1-(3) 42
Section117:Crownapplication 42
Section117(1-4) 42
PartVoftheAct 43
Section146:Orders,regulationsanddirections 43
Section148:Extent 43
Section149:CorrespondingprovisionforNorthernIreland 44
Section150:Commencement 44
Section151:Shorttitle 44
3 TheAct:TheAdjudicationProvisions 46
Section1:Righttoreferdisputestoadjudication 46
Section108(1) 46
Section108(2)(a) 50
Section108(2)(b) 52
Section108(2)(c) 53
Section108(2)(d) 53
Section108(2)(e) 54
Section108(2)(f) 54
Contents vii
Section108(3) 55
Section108(4) 56
Section108(5) 56
Section108(6) 57
4 TheAct:ThePaymentProvisions 58
Section109:Entitlementtostagepayments 58
Section109(1) 58
Section109(2) 59
Section110:Datesforpayment 60
Section110(1) 60
Section110(2) 60
Section110(3) 64
Section111:Noticeofintentiontowithholdpayment 65
Section111(1) 65
Section111(2) 71
Section111(3) 71
Section111(4) 71
Section112:Righttosuspendperformancefornon-payment 72
Section112(1) 72
Section112(2) 73
Section112(3) 73
Section112(4) 74
Section113:Prohibitionofconditionalpaymentprovisions 74
Section113(1) 74
Section113(2)-(5) 75
Section113(6) 75
5 TheSecondaryLegislation 77
TheSchemeforConstructionContracts(EnglandandWales)Regulations1998 77
PartI–Adjudication 78
Noticeofintentiontoseekadjudication 78
Paragraph1 78
Paragraph2 79
Paragraph3 81
Paragraph4 81
Paragraph5 82
Paragraph6 83
Paragraph7 83
Paragraph8 84
Paragraph9 86
Paragraph10 90
Paragraph11 90
Powersoftheadjudicator 91
Paragraph12 91
Paragraph13 92
Paragraph14 93
Paragraph15 93
Paragraph16 94
viii Contents
Paragraph17 94
Paragraph18 94
Paragraph19 95
Adjudicator’sdecision 96
Paragraph20 96
Paragraph21 99
Paragraph22 99
Effectsofthedecision 100
Paragraph23 100
Paragraph24 100
Paragraph25 102
Paragraph26 102
PartII–Payment 103
Entitlementtoandamountofstagepayments 103
Paragraph1 103
Paragraph2 103
Datesforpayment 105
Paragraph3 105
Paragraph4 105
Paragraph5 105
Paragraph6 106
Paragraph7 106
Finaldateforpayment 106
Paragraph8 106
Noticespecifyingamountofpayment 107
Paragraph9 107
Noticeofintentiontowithholdpayment 108
Paragraph10 108
Prohibitionofconditionalpaymentprovisions 108
Paragraph11 108
Interpretation 108
Paragraph12 108
TheConstructionContracts(EnglandandWales)ExclusionOrder1998 109
Citation,commencementandextent 109
Paragraph1 109
Interpretation 109
Paragraph2 109
Agreementsunderstatute 110
Paragraph3 110
Privatefinanceinitiative 110
Paragraph4 110
Financeagreements 111
Paragraph5 111
Developmentagreements 111
Paragraph6 111
6 AdjudicationClauses,RulesandProcedures 113
Adjudicationclauses 113
JointContractsTribunal 113
Contents ix
ConstructionConfederation 116
InstitutionofCivilEngineersConditions6thEdition 116
InstitutionofCivilEngineers–NECEngineeringandConstructionContract 117
TheGovernmentContracts 118
AssociationofConsultingEngineers 122
InstitutionofChemicalEngineersFormofContract2001 122
Adjudicationrulesandprocedures 123
Comparisonoftheprovisions 125
Thenoticeofadjudication 125
Thenominationoftheadjudicator 125
Thereferralnotice 126
Thedateofreferral 127
Adjudicator’sagreement 127
Adjudicator’sfees 128
Adjudicator’sjurisdiction 129
Theparties’costs 130
Adjudicator’sabilitytoresign 131
Terminationbyparties 131
Joinderprovisions 132
Procedureandtimetable 132
Powerofadjudicatortoopenup,reviewandrevise 133
Expertassistance 134
Mattersfordecision 135
Methodofdecision 136
Reasons 136
Statusofdecisionifnotreachedwithin28daysoranyextendedperiod 137
Adjudicator’slien 138
Correctionofdecision 139
Destructionofdocuments 140
7 TheAppointment 141
Selectingtheadjudicator 144
Thetimefortheappointmentoftheadjudicator 144
Whoareadjudicators? 144
Trainingofadjudicators 146
Howcananadjudicatorbeappointed? 146
Agreementonanadjudicator 147
Naminganadjudicatorbyprioragreement 147
Appointmentwhenthedisputeoccurs 150
WhatareAdjudicatorNominatingBodies? 150
Theadjudicatorandappointment 152
Theadjudicator’stermsandconditions 154
Thestandardformsofcontractandappointment 155
JointContractsTribunalmaincontracts 156
JointContractsTribunalsub-contracts 159
ConstructionConfederationsub-contracts 159
InstitutionofCivilEngineers’maincontracts 160
InstitutionofCivilEngineers’AdjudicationProcedure 161
CivilEngineeringContractors’Associationsub-contracts 162
x Contents
Governmentcontracts 164
NECEngineeringandConstructionContract 165
InstitutionofChemicalEngineersFormofContract2001 166
TheAssociationofConsultingEngineers 167
TheConstructionIndustryCouncilModelAdjudicationProcedure 168
CentreforEffectiveDisputeResolution 168
TheTechnologyandConstructionSolicitors’Association 169
Finalcomments 169
8 Adjudicators’Agreements 170
Generalintroduction 170
Thetermsofanadjudicator’sagreement 171
Theagreementbetweentheadjudicatorandtheparties 172
TermswheretheSchemeapplies 175
Publishedadjudicators’agreements 176
TheJointContractsTribunaladjudicationagreement 176
TheConstructionIndustryCounciladjudicator’sagreement 178
TheInstitutionofCivilEngineers’adjudicationagreement 180
TheAdjudicator’sContractfortheNECEngineeringand
ConstructionContract 180
GC/Works/1ModelForm8Adjudicator’sAppointment(Condition59) 182
TheInstitutionofChemicalEngineers’adjudicator’sagreement 183
CentreforEffectiveDisputeResolution 186
TechnologyandConstructionSolicitors’Association 186
Conclusion 186
9 Jurisdiction,PowersandDuties 187
Jurisdiction 187
Cantheadjudicatordeterminehisownjurisdiction? 188
Independence 191
Impartiality,naturaljustice,fairnessandbias 191
TheAct 193
Subsidiaryquestions 197
TheScheme 198
TheStandardFormsofContract 200
JointContractsTribunalMainContractForm 200
JointContractsTribunalSub-Contractforms 205
ConstructionConfederation 205
InstitutionofCivilEngineers’MainContract 205
CivilEngineeringContractors’Associationsub-contracts 210
Governmentcontracts 212
NECEngineeringandConstructionContracts 215
TheInstitutionofChemicalEngineersAdjudicationRules(TheGreyBook) 216
10 Theprocess 219
Initiatingtheadjudicationprocess 219
Thenoticeofadjudicationandthereferraltotheadjudicator 219
Onreceiptofthereferral 221
Aftertheissueoftheinitialdirections 223
Contents xi
Submissionsbytheparties 224
Meetingswiththeparties 226
Investigatingthefactsandthelaw 228
Takingadvice 229
Obstaclestotheprocess 230
Thereluctantparty 230
Thedrawingofinferencesbytheadjudicator 231
The‘commercial’decision 232
Whatcanbeadjudicated? 232
Disputesrelatingtodesign 232
Disputesrelatingtoextensionsoftime 234
Disputesrelatingtoprofessionalindemnityinsurance 234
The‘unadjudicable’dispute 235
Thelargeanddetailedclaimforlossand/orexpense 237
Theadjudicatorwhodecides‘Icannotdecide’ 238
Someconcernsaboutadjudication 239
Theadjudicatorandsubsequentlegalaction 240
11 TheDecision 241
Theprocessofmakingthedecision 243
Decidingthefacts 244
Theburdenofproof 245
Probability 246
Assessingtheevidence 246
Consistency 247
Thebalanceofprobabilities 247
Theascertainmentoffactsbytheadjudicatorhimself 248
Decidingthelaw 249
Pullingthestrandstogether 250
Draftdecisions 251
Writingthedecision 251
Thetitleofthewrittendecision 251
Thegeneralformatofthewrittendecision 252
Thedecision–theintroductorysection 252
Thedecision–thesubstantiveaspect 254
Thedecision–reasons 255
Thedecision–interest 258
Thedecision–costs 259
Stakeholders 260
Thedecision–finalmatters 261
Checklistfordecision 263
12 EnforcementandAppeals 264
Theeffectsofthedecision 264
Enforcement–initialconsiderations 265
Arbitration 267
Thestandardformsofcontract 268
Litigation 269
BeforeMacobv.Morrison 269