Plan to make low-value adjudications affordable launched
The Construction Industry Council (CIC) has published a new model which it hopes will make adjudications in low-value disputes more affordable to small- and medium-sized enterprises (SMEs).
The Low Value Disputes Model Adjudication Procedure (CIC LVD MAP) encourages the use of adjudication as a disputes resolution process where the amount in dispute is small.
Its publication comes in response to growing construction industry concerns about the increasing complexity and prohibitive costs of adjudication.
CIC said the purpose of the model is to provide a simple and cost-effective procedure to make adjudication more accessible for SMEs and others involved in lower-value disputes where claims are for £50,000 or less, and the issues in dispute are relatively uncomplicated.
Another objective is to allow newly qualified adjudicators to gain experience deciding low value disputes.
The CIC LVD MAP complies with the Housing Grants, Construction and Regeneration Act 1996 as amended by Part 8 of the Local Democracy, Economic Development and Construction Act 2009 (the “Construction Act”).
The new adjudication procedure is the result of two consultations with the construction industry and other stakeholders. Under the process, the adjudicator’s fee is linked to the amount claimed, which the CIC said would provide certainty as to how much the adjudicator will be paid for making a decision.