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SPONSORED EDITORIAL industry solutions Getting paid:


Small claims adjudication? By Gavin Tomson


Partner, MacRoberts LLP


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3 KNIPEX STRIPPER MAKES THE CUT


Te Covid-19 crisis has seen sites closing, workers furloughed and an increase in insolvencies, which have had a devastating effect on cashflow and businesses in the industry. For the majority of firms,


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David Hughes: 0131 561 0022 davidh@connectcommunications.co.uk


it is critical that interim payments continue to flow and the Housing Grants Construction and Regeneration Act 1996 (as amended) provides tools for maintaining that cashflow. Parties to a construction contract have the statutory right to “adjudicate” their disputes where those disputes are decided by an independent industry professional, rather than judge or arbitrator, within 28 days. Adjudication decisions can be reached and payments can be made within a matter of weeks from the dispute arising. However, the costs of


adjudication have become a barrier to the resolution of small scale disputes. Unlike in court or arbitration proceedings, the successful party cannot generally recover its legal costs from the other side. As the disputes being referred to adjudication have become more complex, the time spent and fees charged by adjudicators have also increased. Te potential costs can quickly become


disproportionate in small value disputes. In recognition of this


problem, the Construction Industry Council has introduced the CIC Low Value Disputes Model Adjudication Procedure (LVD MAP). Tis sets out a streamlined procedure for low value disputes, linking the adjudicator’s fee to the sum claimed. Fees for disputes worth up to £50,000 are fixed at £2,000 to £6,000. In response to the current crisis and in line with the LVD MAP, industry body RICS, has offered fixed- fee, fast-track “summary adjudications” where disputes will be decided by an independent


adjudicator within


14 days, after brief written submissions by the parties. Tere have long been


complaints about the increasing cost of adjudication for lower value disputes and the introduction of these procedures is to be commended. Tey will provide a lifeline for many who would not otherwise be able to resort to adjudication. MacRoberts LLP provides


advice in all aspects of adjudication and construction disputes. ●To find out more, email gavin.thomson@ macroberts.com or call 0131 248 2162.


CABLEtalk JUNE/JULY 2020 45


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