Introduction

Once a notice of referral is served by a referring party, a responding party will be under significant pressure given the extremely tight timeframe for an adjudication.

The process is also open to a situation where the referring party serves a notice of referral to adjudication at a time that makes quick turnaround more challenging for the responding party, for example on a Friday evening or before a holiday period such as Easter or Christmas, in an attempt to gain advantage. This tactic if often referred to as an “ambush adjudication”.

It is therefore critical that, in the event…

Continue Reading Guide book to preparing for an adjudication

On 23 June 2023, the High Court delivered judgment enforcing two adjudicator’s decisions relating to the same parties but on two different construction projects. In McGurran Civils (ROI) Limited v K&J Townmore Construction Limited [2023] IEHC 355 an unusual aspect of resisting enforcement was that the respondent opposed the leave applications but did not challenge the validity of the adjudicator’s decisions. Instead the respondent sought minor reductions in relation to interest and VAT. Also, the respondent complained that the applicant did not send a claim letter prior to instituting proceedings.

Background

The first adjudicator’s decision was issued in December 2022…

Continue Reading The Irish courts’ continued support for construction adjudication

There is a general consensus that referral of payment disputes to statutory adjudication pursuant to the Construction Contracts Act, 2013 (the Act) is increasing in popularity year on year. This view has recently been supported by the Chairperson of the Construction Contracts Adjudication Panel, in his sixth annual report which was published in November 2022. It shows an increase of almost 60% in requests for the Chairperson to appoint an adjudicator to a payment dispute when compared to the previous year.

The annual report does not definitively provide all information relating to adjudications in the past year, namely given…

Continue Reading Overview of the Sixth annual report of the Chairperson of the Construction Contracts Adjudication Panel

The Technology and Construction Court (TCC) in England and Wales has recently given judgment in Essential Living (Greenwich) Limited v Elements (Europe) Limited [1] in relation the extent to which an adjudicator’s decision is binding on the parties for the purpose of an ongoing final account process. The judgment may be of interest in an Irish context.

Background

Essential Living engaged Elements to design and construct modular units for a mixed use development. The contract contained a provision whereby the construction manager could, within 12 weeks after practical completion, fix a completion period which was ‘fair and reasonable.’…

Continue Reading An adjudicator’s decision in the context of the final account process

In the recent decision of Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP[1], the English Court of Appeal has provided further guidance on whether a collateral warranty constitutes a ‘construction contract.’ If a collateral warranty is a construction contract then disputes thereunder come within the adjudication regime. The decision was eagerly awaited not only because previous authorities on the issue reached different conclusions but also because Coulson J (who delivered the leading judgment) was previously of the view that ‘if the underlying contract was a construction contract, it [made] commercial sense for any parasitic…

Continue Reading Collateral warranties and the Construction Contracts Act 2013