|Title: ||Insolvency and resolution of construction contract disputes by adjudication in the UK construction industry|
|Citation: ||Construction Management and Economics, 23(4): 399-408|
|Publisher: ||Taylor & Francis|
|Journal: ||Construction Management and Economics|
|Issue Date: ||2005 |
|Additional Links: ||http://www.informaworld.com/smpp/content~content=a714023029~db=all~order=page|
|Abstract: ||The Housing Grants, Construction and Regeneration Act 1996 provides that a party to a construction contract has a right, at any time, to refer any dispute under the contract for adjudication. This resolution method requires a neutral third party, the adjudicator, to determine the dispute within 28 days after receipt of the referral regardless of the complexity of the issues in dispute. The decision is to be implemented even if it is palpably wrong in fact or law. A key assumption of this legislation is that any mistakes made by an adjudicator can be corrected by reference of the same to litigation or arbitration. It is a major concern that restoration of the parties to their correct positions may become impossible where, after implementation of an adjudicator's mistaken decision, the beneficiary of the decision becomes insolvent. This article is a critical review of all the cases in which the courts have dealt with the effect of insolvency on the right to adjudicate and the enforceability of adjudicators' decisions. Two main conclusions are derived from the review. First, the court may decline to enforce an adjudicator's payment decision where there is strong evidence that, on account of formal insolvency, the payee would be unable to make repayment if final resolution of the dispute necessitates it. Second, the only exception so far to the general right to refer to adjudication arises where the other party is in administration. (Taylor & Francis)|
|Description: ||This study was carried out in collaboration with Fenwick Elliott, an international construction law practice.|
|Keywords: ||Housing Grants, Construction and Regeneration Act 1996|
Contract delay and disruption
|Appears in Collections: ||Construction and Infrastructure|
|Files in This Item:|
There are no files associated with this item.
All Items in WIRE are protected by copyright, with all rights reserved, unless otherwise indicated.