Adjudication is generally a non-binding interim process which leaves the door open to finally deciding the dispute by litigation or arbitration. Effectively then, a party can lose a battle but ultimately win the war.

Winning a battle but losing the war

TCC busy with two novel Part 8 applications in as many weeks
It is only the beginning of February and already there is a new trend developing in the TCC: parties are making Part 8 applications during an adjudication. This is something I welcome (it was on my wish list for 2009). Continue reading

In the first paragraph of his judgment in Able Construction (UK) Ltd v Forest Property Development Ltd [2009] EWHC 159 (TCC), Mr Justice Coulson remarked that:
“This is an adjudication enforcement application under CPR Part 24 which raises a number of issues that are becoming a feature of these straightened times. From my particular vantage point, it appears that the current recession is providing the first real test of the adequacy of the adjudication regime introduced by the Housing Grants, Construction and Regeneration Act 1996 since the initial flurry of cases when the legislation first came into force.” Continue reading

Olympic contracts bring glimmer of hope for SMEs
Construction News has reported that small and medium sized enterprises (SMEs) from across Britain are winning work from the Olympic Delivery Authority (ODA). Continue reading

Unusually, the TCC refuses to enforce an adjudicator’s decision
The topic for discussion at the last Arbitration Society lunch (which I chaired) was the TCC’s decision in Quartzelec Limited v Honeywell Control Systems Limited [2008] EWHC 3315 (TCC).
This case raised a number of interesting points: Continue reading

LDEDC Bill: outlandish proposals at the Lords’ committee stage
The LDEDC Bill 2008 is part way through the four days allocated for debate in Grand Committee. By Thursday morning (29 January) we should be one step closer to knowing what amendments may be made to the Construction Act 1996. Some of the changes currently suggested are entirely inappropriate for the industry. Continue reading

I agree with the recent MCMS post that 2009 is likely to see an increased use of the CPR Part 8 procedure to bring jurisdictional challenges before or during an adjudication.

Fiona Trust: unsettling times ahead?
In his Building column in November 2007, Tony Bingham wrote about the House of Lords decision in the Fiona Trust case. You’ll remember it: it’s the one where the House of Lords decided that the words “disputes arising under a contract” in an arbitration agreement are wide enough to include disputes “in connection with” the contract.

The jurisdiction minefield: tips for the responding party
It is now routine for the responding party to challenge the jurisdiction of the adjudicator. In my experience, once the adjudicator has confirmed acceptance of his appointment and the referral notice has been issued, it is advisable for the responding party to:

UK law currently requires most companies to pay VAT within 30 days of the end of the VAT quarter. The Financial Times recently reported a proposal to extend the payment period for smaller companies, suggesting that it could rise to 90 days. The proposal is intended to improve cash flow for small companies, who are finding it especially hard to get bank finance. Continue reading