Adjudication-article

Builders & Contractors is one of the biggest construction based magazines in New Zealand, enjoying over 25 years of history. Queen City Law has had multiple articles published in the magazine, our most recent article being about adjudication.

Adjudication is a form of alternative dispute resolution, meaning that it is a way for parties to solve their issues without having to resort to taking matters to court. Adjudication has been developed to suit the construction industry in particular (by way of the Construction Contract Act 2002), which prioritises quick and speedy resolutions to issues such as payment. This is important when there are time schedules to keep, other projects in the pipeline, and any long delays could risk significant losses.

Adjudication is common in many modern construction contracts and the process is very straightforward. Each party gives their argument to an impartial third party who makes a decision as to what happens next. Adjudication doesn’t require lengthy legal submissions or complicated formal documentation, which makes it cheaper and faster to perform.

Adjudication is a powerful tool in the current state of the construction industry, and it is important that you understand all of the nuances and consequences behind it.