Wednesday, April 28, 2010
Adjudication
If you don’t pay because you are disputing the scheduled amount, you can use the
adjudication procedure introduced by the Act.
The Act provides a fast-track adjudication process for disputes. The only disputes that
can be referred to adjudication are those which relate to payments under the contract
and any disputes you have about the rights and obligations of the parties under the
contract.
The adjudicator can make a decision within a very tight timeframe and the decision is
binding on both you and the contractor. It is also enforceable as a Court judgment
giving access to the normal range of enforcement procedures. The contractor can also
ask the adjudicator for a charging order over the building site.
Nothing in the Act, however, prevents both parties from first submitting a dispute to
another form of resolution, such as the Courts, arbitration or mediation.
How To Start An Adjudication.
Whoever starts the adjudication process must serve a written notice of adjudication
on the other person giving details about the dispute and the names and addresses
of both parties for service of the legal documents. If it is the builder starting off the
adjudication, (and the building is not a commercial property), the builder’s notice
must also:
1)- Explain to you your rights and obligations in the adjudication process.
2)- Briefly describe that process.
If the builder’s notice doesn’t do this, the notice will have no legal effect. This additional information for home-owners must be in the form set out in the Schedule 1, Form 2 of the Construction Contracts Regulations 2003 available on the
Government Legislation website.
The Adjudication Process.
The steps in the adjudication process are:
1)- An adjudicator is chosen – either you and the builder/contractor agree on one, or
one will be chosen for you.
2)- Once an adjudicator has been chosen, whoever started the process has five
working days to refer the dispute to the adjudicator in the form an adjudication
claim (which is also served on the other party), giving the details about the dispute.
3)- After the adjudication claim has been received by the other party, that other party
has five working days to respond to the adjudicator about the adjudication claim.
You will also receive a copy of their response.
4)- You can appoint a lawyer to represent you if you wish.
5)- The adjudicator can:
- Require you and the builder/contractor to make written submissions and
provide copies of documents.
- Appoint an expert adviser to report on specific issues (you must be notified first).
- Call a conference.
- Inspect any construction work (but only with your consent or, if you’re
the landlord, the consent of your tenants; you can’t unreasonably withhold consent).
- Make a decision and give both parties a copy with the reasons for the decision.
- Order payment of an amount of money.
- Order one party to pay the costs of the other party.
6)- If you or the builder/contractor doesn’t pay any amount ordered, the other
person can take it to Court to recover the amount as a debt.
A review of the Building Act was initiated in August 2009. This review is part of the Better Building Blueprint, a series of measures that will make it easier and cheaper to build good quality homes and buildings.
In the first phase of the review, the Department of Building and Housing worked with representatives of the building and construction industry, local authorities, and home owners,
to identify what could be done. They found that there have been much-needed improvements in the quality of building work since the Act was introduced in 2004, but the system was more costly than necessary and less efficient and effective than it could be.
The Building Act 2004.
We look at the changes introduced by the new Building Act 2004 and what this will mean for consumers.
Implementation of The 2004 Act.
When do the new initiatives introduced in the Building Act 2004 come into effect,
and what happens to building work currently underway?
Building Consents.
Applying for building consent is an essential step in any building project. We explain
the process - how to apply, what to include in your application, what happens if you
don't get building consent and how to apply for a code compliance certificate when
the project is finished.
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