I drafted an article, in 2011, entitled, ‘Is Adjudication too Expensive?’ It would now appear the question has been answered and the game has changed!
For too long, disputes that have a lower value, less than say £20-30k have not been economical to pursue, because the likely cost and risk to do so would be prohibitive for the potential recovery.
With many clients simply writing off these monies, that were possibly rightfully owed to them, the industry had to step in, and it has:
- In January 2020 the Technology and Construction Solicitors’ Association’s (TeCSA) started offering a low-value disputes adjudication service for claims for fixed amounts up to £100,000.
- In April 2020, the RICS launched its 14 day ‘Summary’ Adjudication service for disputes valued at less than £20,000.
- In May 2020 the Construction Industry Council launched its own low value adjudication (LVD MAP) which applies to low value disputes of less than £50,000.
Now these really are game changers – or, at least they should be. I forget how many times a client has sought advice on a legitimate dispute, to claim monies rightfully owed to it, but the potential recovery has fallen under the magic £20-30K threshold making it uneconomical to pursue.
At least we now have tangible ADR options to offer our clients.
Construction Quantum Expert