Search results

1 – 10 of 416
Article
Publication date: 8 April 2024

Issaka Ndekugri, Ana Karina Silverio and Jim Mason

States have intervened with legislation to improve cashflow within construction project supply chains. The operation of the UK’s Housing Grants, Construction and Regeneration Act…

Abstract

Purpose

States have intervened with legislation to improve cashflow within construction project supply chains. The operation of the UK’s Housing Grants, Construction and Regeneration Act 1996 leads to payment obligations stated either as a contract administrator’s certificate (or equivalent) or an adjudicator’s decision. The purpose of the intervention would be defeated unless there are speedy ways of transforming these pieces of paper into real money. The combination of the legislation, contractual provisions and insolvency law has produced a minefield of complexity concerning enforcement of payment obligations stated in these documents. Unfortunately, the knowledge and understanding required to navigate these complexities have been sorely lacking. The purpose of this paper is to plug this gap.

Design/methodology/approach

Legal research methods and case study approaches, using relevant court decisions as data, were adopted.

Findings

The enforcement method advised by the court is the summary judgment procedure provided under the Civil Procedure Rules. An overdue payment obligation, either under the terms of a construction contract or an adjudicator’s decision, amounts to a debt that can be the subject of insolvency proceedings. Although the insolvency enforcement method has been successfully used on some occasions, using it purely as a debt collection weapon would be inappropriate and likely to be punished by the court.

Originality/value

The paper contributes to knowledge in two ways: (i) it maps out the factual situations in which these payment challenges arise in language accessible to the construction industry’s professions; and (ii) comparative analysis of payment enforcement methods to aid decision-making by parties to construction industry contracts. It is relevant to the other common-law jurisdictions in which similar statutory interventions have been made.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 17 July 2007

Angus Reid and Robert C.T. Ellis

The paper seeks to examine how the existence of a “dispute” for the purpose of construction adjudication has been determined and to consider whether direct application of the…

1729

Abstract

Purpose

The paper seeks to examine how the existence of a “dispute” for the purpose of construction adjudication has been determined and to consider whether direct application of the often cited Halki Shipping Corporation v. Sopex Oils Ltd could lead to a breach of natural justice.

Design/methodology/approach

The paper analyses construction adjudication enforcement judgments since 2000 and considers the different approaches taken by the various judges. Cases are considered chronologically and are grouped into distinct phases to demonstrate the development of the law in this area.

Findings

There is no definitive meaning of “dispute” and the existence of a dispute in construction adjudication is a subjective issue requiring a practical common‐sense approach relying on the facts, the law and policy considerations. If a strict application of Halki is used in such cases, a breach of natural justice may arise whereas a common‐sense application of the Halki test, taking cognisance of time‐related issues and the original intent of construction adjudication, offers scope to establish a universal policy.

Practical implications

The paper provides a historical summary which should encourage parties to adjudication to recognise that many of the court challenges which arise could be prevented, or could be more easily resolved if a reasonable, common sense approach was adopted.

Originality/value

The paper provides a comprehensive review of construction adjudication case law relating to the existence of a “dispute” and indicates how the law has developed in this area.

Details

Structural Survey, vol. 25 no. 3/4
Type: Research Article
ISSN: 0263-080X

Keywords

Article
Publication date: 10 October 2016

Haytham Besaiso, Peter Fenn and Margaret Emsley

This paper aims to investigate the use of alternative dispute resolution (ADR) techniques in the Palestinian construction industry. It also seeks to identify some of the drivers…

Abstract

Purpose

This paper aims to investigate the use of alternative dispute resolution (ADR) techniques in the Palestinian construction industry. It also seeks to identify some of the drivers and barriers to the greater use of particular ADR techniques.

Design/methodology/approach

In this study, 12 semi-structured in-depth interviews were conducted with senior ADR practitioners comprising nine construction professionals, two eminent lawyers and a retired judge.

Findings

This research has explored the practices of mediation, adjudication and expert evaluation in the Palestinian construction industry and has identified deficiencies in implementation and the roles that the cultural and legal contexts play in this. The research findings cast some doubt on the results of previous studies asserting the widespread use of construction mediation.

Originality/value

This paper contributes to knowledge by bringing new insight into the practice of particular ADR techniques in the Palestinian construction industry and in identifying challenges to the more widespread adoption of these ADR techniques. This paper exposes the myth of the popularity of construction mediation and the dilemma to the use of mediation brought by the social construction and conceptualisation of the mediator’s role.

Details

International Journal of Law in the Built Environment, vol. 8 no. 3
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 10 July 2017

Samer Skaik

Statutory adjudication was introduced into the security of payment (SOP) legislation as a fast-track payment dispute resolution process with an express object to facilitate cash…

1180

Abstract

Purpose

Statutory adjudication was introduced into the security of payment (SOP) legislation as a fast-track payment dispute resolution process with an express object to facilitate cash flow within the construction contractual chain. After more than a decade of the operation of the regime in Australia and Singapore, it becomes apparent that there are many operational problems that jeopardise the intended object of the legislation, particularly in adjudicating complex payment disputes. The aim of this paper is to explore views of the industry stakeholders regarding some operational problems of statutory adjudication of as well as possible solutions.

Design/methodology/approach

“Expert interviews” method is adopted to collect the empirical data, involving interviews with 23 practitioners from Australia and Singapore.

Findings

The study identified many operational problems jeopardising the attainment of the object of the SOP legislation such as bias of authorised nominating authorities, short adjudication timeframes, inadequate regulations of adjudicators, jurisdictional challenges, involvement of courts and lawyers and complex drafting of the legislation. The study also analysed the views of industry experts with regard to the opportunities for improvement in the operation of the SOP legislation such as following the Queensland model as amended, and introducing a legislative review mechanism and establishing a peer review process. It also suggested specific amendments to make the legislation a more user-friendly.

Practical implications

The implication of this study is a better understanding of the most critical problems inherent in statutory adjudication that need serious consideration by the legislatures and policymakers. In addition, the study also provides some practical measures as suggested by the industry practitioners for each identified problem which may stand as a reliable reference for potential reform in the SOP laws.

Originality/value

There is inadequate empirical research conducted to investigate problems in the operation of statutory adjudication. The study provides original empirical findings which become much necessary nowadays in light of the dynamic moves towards law reform in SOP laws, particularly in Australia. The study provides some practical measures as suggested by the industry practitioners for each identified problem which may stand as a reliable reference for potential reform in the SOP laws.

Details

International Journal of Law in the Built Environment, vol. 9 no. 2
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 6 July 2012

Jeremy K. Coggins and Steve Donohoe

The purpose of this paper is to analyse the development of English Law and the Law in New South Wales, Australia in statutory adjudication concerning judicial review of…

277

Abstract

Purpose

The purpose of this paper is to analyse the development of English Law and the Law in New South Wales, Australia in statutory adjudication concerning judicial review of adjudicators' errors in law.

Design/methodology/approach

This paper adopts a black‐letter law approach focussing on recent decisions and their effect on statutory adjudication.

Findings

Following the commencement of statutory adjudication in the UK, the English courts swiftly supported the new “pay now, argue later”, rapid form of dispute resolution by holding adjudication to be a private dispute resolution process akin to expert valuation. As such, the English courts have consistently held that adjudicators operate within their jurisdiction even though they may err on points of law, as long as such errors were committed in the course of attempting to answer a question they were contractually authorised to consider. The courts' position in New South Wales (NSW), however, has differed considerably. In NSW, the first Australian State to introduce statutory adjudication, the courts' position with respect to errors of law on the face of the record made by an adjudicator, who had jurisdiction to enter on the inquiry, in the course of making their determination has been somewhat tortuous. Contrary to the initial position following commencement of statutory adjudication, the paper concludes that it may now be more difficult to enforce an adjudicator's determination which contains an error of law in England than in NSW.

Originality/value

This paper compares the development of adjudication law in England with that of one state in Australia. The different directions that the law has taken in these jurisdictions will be of interest to academic and practitioners not only in England and Australia but to other jurisdictions where statutory adjudication has been introduced or where legislation is being considered. To the authors knowledge no previous study of this kind has been carried out previously.

Details

International Journal of Law in the Built Environment, vol. 4 no. 2
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 4 October 2011

Michael C. Brand and Philip Davenport

The purpose of this paper is to outline a proposal for a Dual Scheme model of statutory adjudication for the Australian building and construction industry.

637

Abstract

Purpose

The purpose of this paper is to outline a proposal for a Dual Scheme model of statutory adjudication for the Australian building and construction industry.

Design/methodology/approach

The paper deals with the security of payment problem in the Australian construction industry and the legislative response to that problem in New South Wales and elsewhere more generally. The paper highlights deficiencies in current adjudication schemes in Australia and proposes a revised methodology of adjudication by means of the proposed Dual Scheme model. The Dual Scheme is explained in detail and examples are given showing how the Dual Scheme would work in practice.

Findings

The Dual Scheme of adjudication allows for adjudication of “progress claims” (just as they are adjudicated now under the “Defined Scheme”), but also provides for separately adjudicated “money claims” in a similar way to that done under the “Non‐specific Scheme”. Both parties to a construction contract can take advantage of adjudication under a Non‐specific Scheme whilst simultaneously maintaining the relative time and cost benefits of the Defined Scheme in dealing with progress payment claims. Implementation of the proposed Dual Scheme would require new legislation.

Originality/value

The Dual Scheme is not a proposal to merely amalgamate two existing models of adjudication in Australia. Rather, it is a Dual Scheme incorporating the philosophy of two disparate systems of adjudication framed in a companionable form. It is hoped that the Dual Scheme may act as a common starting point for eventual agreement between the various interested groups as to what a national scheme of statutory adjudication in Australia will resemble in the future. The Dual Scheme proposal may be of interest in other jurisdictions where statutory adjudication for the construction industry has been introduced or is being contemplated.

Details

International Journal of Law in the Built Environment, vol. 3 no. 3
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 19 January 2015

Ping Yung and Kieran Rafferty

– The purpose of this paper is to evaluate the effectiveness of the statutory adjudication legislation in Western Australia against its stated aims.

1247

Abstract

Purpose

The purpose of this paper is to evaluate the effectiveness of the statutory adjudication legislation in Western Australia against its stated aims.

Design/methodology/approach

The four objectives of the Western Australia Construction Contracts Act 2004 were identified. For each objective a number of criteria has been devised. In total, 22 registered adjudicators were interviewed, representing 28 per cent of all adjudicators in Western Australia. The interviewees were divided into two groups, one with legal background (being both lawyer and adjudicator), the other without (construction professionals). They were asked to evaluate the criteria against a five-point Likert scale in addition to open ended comments. Mann-Whitney U tests were used to examine whether there were significant differences between the two groups. Annual reports of Building Commissioner, database of the WA State Administrative Tribunal and some law cases were also referred to.

Findings

It is found that the West Coast Model is fair to both parties, the adjudications are generally completed speedily according to the prescribed timeframe, and they have been conducted in various levels of formalities. Adjudications are very cost effective for larger claims. However, they are not so for smaller claims. The increasing uptake rate shows that adjudication is getting more popular, while the low appeal rate shows that decisions on dismissal are fair.

Research limitations/implications

The adjudicators’ opinions are only part of the overall picture and that more research on this topic needs to be done.

Originality/value

There have been two distinct legislative models in Australia, commonly known as East Coast Model and West Coast Model. A number of authors have called for a national dual model incorporating both current models. However, it might be too early to discuss the national dual model when there have been very few evaluations on the West Coast Model and among the few there have been problems in the research design. This paper seeks to bridge the gap by evaluating the West Coast Model against its stated aims.

Details

Engineering, Construction and Architectural Management, vol. 22 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 7 October 2014

Jennifer Charlson, Robert Baldwin and Jamie Harrison

The purpose of this paper is to consider the implications of the admission of oral contracts to statutory adjudication proceedings. A major criticism of the Housing Grants…

Abstract

Purpose

The purpose of this paper is to consider the implications of the admission of oral contracts to statutory adjudication proceedings. A major criticism of the Housing Grants, Construction and Regeneration Act 1996 (“HGCRA 1996”) was that Section 107 required contracts to be “in writing” for the parties to be able to use statutory adjudication. In response, the Local Democracy, Economic Development and Construction Act 2009 repealed Section 107 of the HGCRA 1996. This paper considers the implications of the admission of oral contracts to statutory adjudication proceedings, whereby adjudicators’ may now have to determine the exact nature of oral agreements. The critical literature review has highlighted that there is a perceived risk that, by allowing oral contracts to be decided through adjudication, there could be an increased risk of injustice (as the adjudicator may have to decide oral testimony about contract formation). Adjudicators may now have to determine the exact nature of oral agreements. The critical literature review has highlighted that there is a perceived risk that by allowing oral contracts to be decided through adjudication there could be an increased risk of injustice (as the adjudicator may have to decide oral testimony about contract formation).

Design/methodology/approach

The questionnaire responses of 38 construction industry professionals were analysed by identifying facts and salient themes. The research aims to identify to what extent the changes have widened the scope for entering into adjudication proceedings and whether there is an increased risk of injustice due to the short timescales involved.

Findings

There was significant agreement that parties to an oral agreement have an increased risk of injustice through wrong interpretation of the terms and significant disagreement that allowing oral contracts to be referred to adjudication will encourage the use of oral agreements. In addition, construction industry professionals were interviewed in the Midlands, UK, to obtain their opinions, views and perceptions of the admission of oral contracts to statutory adjudication.

Originality/value

The research is anticipated to be of particular benefit to parties considering referring an oral contract to adjudication.

Details

International Journal of Law in the Built Environment, vol. 6 no. 3
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 12 October 2015

Tony Hetherton and Jennifer Charlson

This paper aims to examine the potential recovery of own party adjudication costs under the Late Payment of Commercial Debts Regulations 2013. The investigation directly applies…

Abstract

Purpose

This paper aims to examine the potential recovery of own party adjudication costs under the Late Payment of Commercial Debts Regulations 2013. The investigation directly applies to England and Wales, but may be relevant to other jurisdictions.

Design/methodology/approach

The interaction between The Late Payment of Commercial Debts Regulations 2013 (derived from European Directive 2011/7/EU on combating late payment in commercial transactions) and the Local Democracy et al. 2009 including reference to case law was explored. A qualitative research framework was used to collect primary data through semi-structured interviews with experienced construction industry adjudication professionals.

Findings

It was discovered that adjudicators are awarding own party costs under the Regulations, but there was disagreement on the issues in both the literature and amongst the interviewees.

Research limitations/implications

A definitive judgment is awaited from the Technology and Construction Court.

Originality/value

This paper will be of value to construction industry adjudication professionals.

Article
Publication date: 13 April 2012

Heath Marshall

The purpose of this paper is to examine two specific circumstances where UK courts may stay the execution of a judgment to enforce a statutory adjudication decision; where a final…

438

Abstract

Purpose

The purpose of this paper is to examine two specific circumstances where UK courts may stay the execution of a judgment to enforce a statutory adjudication decision; where a final decision is sought on a discrete point; and where the winning party is insolvent. In this context, there is consideration of what a “binding” decision means for the purposes of Part II of the Housing Grants Construction and Regeneration Act 1996.

Design/methodology/approach

A black letter, doctrinal approach is adopted, using two High Court decisions as a focus for wider critical reflection.

Findings

The cases where a final determination on part of an adjudication decision is successful are rare and will depend on the facts. Despite some unorthodox recent decisions, the likelihood remains that parties will struggle to challenge part only of an adjudication decision. The leading case authorities support the underlying principle of the Construction Act insofar as adjudication decisions are binding and should be enforced or else the Court will impose punitive statutory interest on the debt. This principle applies even in cases where the adjudication decision is successfully challenged in such cases.

Originality/value

This paper also addresses two decisions given by Edwards‐Stuart J. in the High Court, both of which adopt a novel approach to the relevant issues, and hence this discussion of those approaches demonstrates originality.

Details

International Journal of Law in the Built Environment, vol. 4 no. 1
Type: Research Article
ISSN: 1756-1450

Keywords

1 – 10 of 416