Adjudication

1. Describe briefly the main amendments to the adjudication and payment provisions of the Housing Grants, Construction and Regeneration Act 1996 introduced for contracts made on or after 1 October 2011? (It is not necessary to quote the full wording of the relevant sections of the Act.) ?

2. In the following circumstances, what, if anything, would be implied from the Scheme for Construction Contracts 1998 (as amended) into a construction contract formed on or after 1 October 2011?
a) The contract states that the decision of the adjudicator will be final.
b) The contact states that the adjudicator may with the parties’ agreement take the initiative in ascertaining the facts and the law.
c) The contract states that either the Contractor or the Sub-contractor may give a payment notice not later than 5 days after the payment due date.
d) The contract states that payments will be due within 14 days of the Contractor notifying the sub-contractor of the amount due.
e) The contract contains a clause providing for the Contractor to notify the Sub-contractor not later than 14 days before the final date for payment of the amount considered due.

3. When writing an adjudication decision what are the main areas which should be covered?

4. You are appointed adjudicator in a dispute where the Contractor is seeking payment of the sum notified in a Payment Notice for which no Payless Notice has been issued. Do you have jurisdiction to deal with the following defences/counterclaims submitted by the Employer? (Marks will be given for referring to relevant caselaw.)
a). The Employer claims that the Payment Notice included the value of defective construction which had previously been notified to the Contractor.
b). The Employer asserts that the Contractor has failed to complete by the Completion Date (which was after the date by which the Payless Notice had to be given) and that consequently the Employer is entitled to deduct liquidated damages to reduce or extinguish the Contractor’s claim.
c). The Employer states that the parties have entered into a framework agreement which covers the current contract and asserts that it is entitled to set off liquidated damages due under another contract under the framework agreement in order to reduce or extinguish the Contractor’s claim.
d). The Employer asserts that the Contractor has failed to complete by the Completion Date (which was after the date by which the Payless Notice had to be given) and that consequently the Employer is entitled to deduct liquidated damages; the Employer contends that, as the amount of liquidated damages is greater than the Notified Sum, a payment is due from the contractor to the Employer.

5.a). Describe briefly the action which the adjudicator should take after receipt of the Referral.
b) Describe briefly the action which an adjudicator should take if the respondent submits a jurisdiction challenge.