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Adjudication is a statutory process (that is to say a process that is governed by an Act of Parliament – the Construction Contracts Act 2002). The process is unique to the building and construction industry and it is designed to provide for the speedy resolution of disputes arising under a construction contract.
BUILDSAFE® has worked closely with the Building Disputes Tribunal to design and develop a specialist fast track adjudication process to deal with disputes in relation to whether or not Practical Completion and/or Completion has been achieved. These disputes are the most likely disputes to occur and to affect the timing for payment and distribution of the Security Amount. However, this unique fast track adjudication process provides for an adjudicator’s determination to be made within a few weeks and at minimal cost to the parties. In most cases the cost of adjudication is shared equally by the parties. Because the parties to the Scheme will have formal written conditions of contract that clearly record the parties’ rights and obligations under the relevant construction contract and a fair payment regime, the disputes that most commonly occur in relation to residential building projects will be avoided because the parties’ bargain is clearly set out from the outset with little room for dispute. Building Disputes Tribunal is recognised and respected as the leading independent, nationwide provider of specialist dispute resolution services for the building and construction industry in New Zealand and is approved by the Minister of Building and Housing as an Authorised Nominating Authority for the purpose of nominating adjudicators under the Construction Contracts Act 2002. Visit Building Disputes Tribunal’s comprehensive Website to learn more about dispute resolution, the Construction Contracts Act, and the regimes for making and responding to payment claims and adjudication under the Act. By registering with the BUILDSAFE® Security of Payment Scheme, you can be assured that any dispute that may arise will be resolved fairly, promptly and cost effectively. With written formal contract documentation and a fair payment regime the chances of a dispute arising are vastly reduced, but access to fair, prompt and cost effective dispute resolution is absolutely essential to ensure that any disputes that do arise are resolved promptly, that cashflow is maintained, and proper entitlements to contract funding are assured and maintained. |
