Fixed Fee Adjudication Scheme

Fixed Fee Adjudication Scheme

Adjudication, whether under the Housing Grants, Construction and Regeneration Act 1996 or pursuant to the specific terms of a construction contract, can be a quick, efficient and cost effective way to resolve disputes in the construction industry.

Disputes are determined by an Adjudicator, who in most cases will be an experienced construction lawyer or an independent construction professional. The Adjudicator’s decision is binding upon the parties and must be complied with; but not necessarily final as it may be revisited by arbitration, a final account adjudication or a court of law. One of the advantages of adjudication is to allow works to continue and help with cash-flow until the matter is resolved.

For the party referring a dispute, the 28 day timescale allows for a speedy resolution which protects cashflow and minimises disruption and delay on site, provided the referral is carefully drafted so as to avoid any successful challenges. For the party responding, it is vital that the issues raised by the referral are mastered quickly so as to ensure that a comprehensive response that advances all available arguments on jurisdiction and merits can be submitted within the seven-day response window. Our specialist Construction Law Team have the experience and skills to help clients through the process and in conjunction with Crown Office Chambers (a specialist set of Construction and Engineering Barristers) we are able to offer a fixed fee adjudication scheme so that you know the precise costs that will be incurred.

For payment disputes based on a payer’s failure to serve a valid Payment Notice and/or valid Pay Less Notice and subject to our assessment that the claim is suitable for the fixed fee scheme.

Up to £25,000 plus VAT the total cost will be £3,500 plus VAT excluding disbursements.

Between £25,000 plus VAT and £35,000 plus VAT the total cost will be £4,250 plus VAT excluding disbursements.

Between £35,000 plus VAT and £50,000 plus VAT the totalcost will be £5,000 plus VAT excluding disbursements.

Between £50,000 plus VAT and £75,000 plus VAT the totalcost will be £6,000 plus VAT excluding disbursements.

Between £75,000 plus VAT and £100,000 plus VAT the total cost will be £7,500 plus VAT excluding disbursements.

For Adjudications between £100,000 plus VAT and £200,000 plus VAT the total cost will be £9,500 plus VAT.

For Adjudications over £200,000 plus VAT the total cost will be £11,500 plus VAT excluding disbursements.

If Counsel is required due to the complexity of the matter then for Adjudications between £100,000 plus VAT – £200,000 plus VAT, Counsel’s fee will be £7,500 plus VAT.

Our work under the Fixed Fee Scheme will include the following:

For a Referring Party (if you are commencing a claim in adjudication):

  • Advice on merits and strategy.
  • Drafting Notice of Adjudication, Referral Notice and Reply (if required).
  • Reviewing and drafting Witness Statements.
  • Correspondence with the other party and the Adjudicator.
  • Attendance and representation at any Hearing directed by the Adjudicator (limited to hearings of one day or less).

For a Responding Party (if you are defending a claim in adjudication):

  • Advice on merits and strategy.
  • Drafting Notice of Response and Rejoinder (if required).
  • Reviewing and drafting Witness Statements.
  • Correspondence with the other party and the Adjudicator.
  • Attendance and representation at any Hearing directed by the Adjudicator (limited to hearings of one day or less).

Exclusions:

The costs of Adjudication are usually not recoverable from the other side even if successful, however, whilst enforcement of an Adjudicator’s award is excluded from this fixed fee scheme, the costs associated with enforcement of an Adjudicator’s award are usually recoverable.

The cost of nomination fees of the Adjudicator are excluded and these are typically between £300-£400 plus VAT.

Costs of any rejoinder and/or surrejoinder and/or any further submissions are excluded.

Costs of Counsel’s advice on any matter are excluded.

For more information please contact us.

Supervising Director, Construction Department & Rayleigh office

Rayleigh

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