Adjudication Solicitors

Adjudication in Republic of Ireland:

Through the Construction Contracts Act 2013 Adjudication was introduced as procedure in the Republic of Ireland. This Act is largely similar to the NI equivalent. However, there are some significant differences. For example, certain types of contracts are exempt from the adjudication procedure, they are as follows:

  • Contracts valued at less than 10,000 euro.

  • Contracts in relation to occupation of residential property less than 200 square meters.

  • Employment contracts.

  • Contracts between government bodies and partners in the public/private sector.

Additionally, issues in relation to payment can only be resolved through adjudication in the Republic of Ireland, which contrasts with the law in Northern Ireland (NI).

Adjudication is initially triggered through serving one party with a notice of intention to deal with the dispute through adjudication.

Whilst there are no time limits when it comes to appointing an adjudicator, the Code of Practice states that written notification of an appointment should be delivered within seven days. This is similar to Northern Irish legislation; however, it is not a strict time limit. Following this, the party who served the initial notice has to provide all relevant documents to support their claim within seven days. The initial referral process lasts 19 days in the Republic of Ireland; this again contrasts with Northern Ireland due to the referral process lasting a week.

The appointed adjudicator has to make their decision within 28 days and any decided sum for the owed party has to be paid within seven days. However, if it is not, the owed party is permitted to stop all of their work or services. This can last until the payment is paid or if the adjudicator’s decision is referred further.

Enforcing an adjudicator’s decision can be conducted through the High Court. However, in the Republic of Ireland oral hearings are not necessary.

An example of an application to enforce the decision of an adjudicator in the Republic of Ireland can be seen through the case of Gravity Construction Ltd v Total Highway Maintenance Ltd.

In that case an issue arose in relation to whether the applicant is entitled to enforce an adjudicator’s decision under the Construction Contracts Act 2013. It was held that the applicant was entitled to a sum decided by the adjudicator. However, the respondent initially did not pay the sum when required but later expressed willingness to pay close to the hearing date. Despite this, the court concluded that the applicant was entitled to enforce the adjudicator’s decision and to recover costs from the respondent as their offer to pay was not sufficient. This was due to the respondent only offering “reasonable contribution” without addressing the name of the specific fees. Thus, illustrating the core principles of adjudication in the Republic of Ireland.

in Northern Ireland, an enforcement application can be seen through Coleraine Skip Hire Ltd v Ecomesh Ltd.

This case occurred due to the defendant failing to pay the plaintiff for the work they have carried out. Consequently, this case questions whether an adjudicator’s decision was made within the statutory time limit, and whether it is enforceable. Additionally, it discusses if a defendant’s financial situation should impact enforcement of adjudication. As a result of the circumstances of the case, the court stated that the adjudicator’s decision was invalid due to lapse of time. Moreover, the parties are awaiting a decision in relation to a stay of execution order, which consequently put the sum to be paid on hold.

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FAQs

How is the adjudicator selected?

An adjudicator may be named in the initial contract between the parties, this contract could list a nominating body, who will select an adjudicator for the dispute. However, if the dispute has arisen and there is no record of a nominating body in the contract, then both parties can negotiate and agree upon an individual to act as the adjudicator.

Often, the parties cannot reach an agreement, therefore the party responsible for referring the dispute to adjudication may make an application to a nominating body, and within five days the nominating body will notify the parties on the appointed adjudicator.

Can I withdraw from an adjudication?

Yes, you can withdraw from an adjudication if you are the party responsible for bringing the dispute before adjudication. However, you will be liable for the cost of the adjudication and the adjudicator’s fees.

However, if you are the countering party to adjudication, and you wish to withdraw from the adjudication then the adjudication will proceed in your absence. It is important to note that, if the adjudicator makes a final decision against you, you must adhere to it as the adjudicator’s decision is binding.

Does the adjudicator make the final decision?

Most adjudication decisions are accepted by the parties; however, this is not always the case with some parties. Both parties have the legal right to bring the dispute before the court if they are not happy with the adjudicator’s decision. However, if you decide to pursue with court, you must still adhere to the adjudicator’s decision until the court rules otherwise.

Who pays for the adjudication fee?

This depends on the terms listed in the contract, however in standard cases both parties are liable for the adjudicator’s fees. It is also possible for the adjudicator to decide how much each party is to pay towards their fees. The successful party is usually not required to pay the fees however if the unsuccessful party fails to pay the fee, then the successful party must pay.

What if you are unhappy with the adjudicator’s decision?

If you are unhappy with the adjudicator’s decision, please note that (while it cannot be appealed) it can be overturned by a higher authority, such as by the courts or arbitration, which we can also attend to you as your Solicitor. For example, we can help you present this matter before the court by applying for the ‘summary judgement’.

Our ADR team will be here to help you during this entire process by providing you with expert advice and consistent contact.

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