Insights
Adjudication.
Adjudication is a fast process in which an independent adjudicator decides a dispute, often while the project is still under way.
How it works
- A party gives notice of the dispute, as the contract requires.
- The adjudicator is appointed by agreement or by the appointing body named in the contract.
- Each party puts its case in writing within short time limits.
- The adjudicator gives a written decision.
Where adjudication comes from
In South Africa, adjudication is most often created by the dispute clause of the contract. The JBCC, FIDIC and NEC forms each provide for it in their own way.
Effect of the decision
Under most forms the adjudicator’s decision must be complied with and is binding until it is revised by arbitration or by a court. Whether and when a party may challenge the decision depends on the contract and on time limits in it.
When it suits
Adjudication suits disputes about payment, certification, time and variations that must be settled quickly so that the works can continue.
Sources
- Standard forms of contract that provide for adjudication (JBCC, FIDIC and NEC).