Adjudication under the Construction Contracts Act 2002
Adjudication is a fast-track dispute resolution process for construction contracts under the Construction Contracts Act 2002 (the CCA). The stated purpose of the CCA is to facilitate regular and timely payments, to provide for speedy and cost-effective dispute resolution, and to provide remedies for recovery of payments.
An adjudicator’s determination is normally available within 6-8 weeks, is binding on the parties, and may be enforced in the courts.
Adjudication provides ‘temporary finality’ as the dispute may be later be referred to other dispute processes such as “a court or tribunal, or to mediation”. However adjudication is, more often than not, the final step in a dispute.
Key steps in the adjudication process
Click the image below to see the full process:
Information on adjudication process may be obtained through a legal advisor, an authorised nominating authority approved by the Minister under section 65 of the Construction Contracts Act 2002.
Changes to adjudication under the Construction Contracts Amendment Act 2015
The Construction Contracts Amendment Act 2015 made significant changes to the payment and adjudication process for all new contracts from 1 December 2015, and from 1 September 2016 extended to design, engineering and quantity surveying work. A new retention regime comes into effect from 31 March 2017.
Refer to CCA Handbook – Making the Construction Contracts Act work, by Peter Degerholm for full details of the changes.