Adjudication
In 2002 Parliament passed the Construction Contracts Act, modeled heavily on the UK's Housing Grants, Construction and Regeneration Act 1996, with some modifications drawn from the New South Wales Building and Construction Industry Security of Payment Act 1999. These statutes are a welcome and overdue development, capturing as they do the concepts of "Life blood of the enterprise" esposed by Lord Denning in Dawnays case in 1970. Similar statues are being drawn up in other parts of Australia and Southeast Asia.
Aside from preserving cashflow, the Construction Contracts Act also provides an independent forum for prompt and cost effective interim determination of contract disputes. Unlike the determination of the Engineer under the traditional forms of contract, the adjudicator has the expertise to determine disputes with no vested interest in the outcome, apparent or otherwise. In that context there is a far greater likelihood that the interim determination wil be treated by the parties as being final.
John is on the AMINZ panel of adjudicators and is a Principal Adjudicator for the Building Dispute Tribunal.
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