Identification of key features that affect the efficient operation of statutory adjudication in the construction industry

Muhammad Ehsan Che Munaaim and Phillip Capper

International Journal of Project Organisation and Management, 2013, vol. 5, issue 1/2, 145-155

Abstract: The purpose of this paper is to identify key features of an adjudication regime that will likely promote its efficient operation. It uses doctrinal legal methodology in the evaluation of security of payment (SOP) legislation, case law, parliamentary speeches, and consultation reports from the selected jurisdictions. This paper shows that adjudication should be used to help contractors, subcontractors, consultants, suppliers, and employers. A dual system of adjudication combining both the UK and NSW models should be introduced, as it offers cost effectiveness and resolves both payment and damages disputes efficiently. Adjudication must be speedy, but the time scale afforded to resolve a dispute must be reasonable. Any attempt to delay the initiation of adjudication should be disallowed. The adjudicator should be appointed only by a nominating authority because this accelerates the whole process of adjudication and preserves impartiality. Legislators in other jurisdictions may consider the recommendations made in this paper when formulating their own statutory regime.

Keywords: statutory adjudication; cash flows; construction industry; disputes; doctrinal methodology; legal methodology; security of payment; legislation; case law; parliamentary speeches; consultation reports; jurisdictions; parliament; contractors; subcontractors; consultants; suppliers; employers; United Kingdom; UK; New South Wales; Australia; damages; adjudicators; nominating authorities; impartiality; legislators; statutory regimes; New Zealand; Singapore; project organisation; project management; project costs; cost management; contract management; contracts. (search for similar items in EconPapers)
Date: 2013
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