Containing the Cost of Complex Adjudications

Abstract

Construction adjudication as envisaged by early promoters of this form of dispute resolution was intended to be quick, dirty, and inexpensive. Speed was to be catered for by strict time limits and the sometimes-dirty results were allowed for by the possibility of appeal after the project was completed. Expense was to be controlled by using practice-based adjudicators with powers to take the initiative in examining the law and facts, and it was not expected that parties would be accompanied by large and expensive legal teams. The case study reported in this paper indicates a somewhat different picture. Time limits were observed and decisions were anything but dirty and have been observed by the parties. However, the costs amount to around one-third of the amount in dispute, and both protagonists are very much in a lose-lose situation. This paper examines the issue of costs in adjudication and proposes further research, particularly related to expert’s fees and using disputes advisory boards for smaller projects.