In the first part of this article, I’ve talked about arguments and conflicts that occur in life. From frivolous conflicts and petty arguments to serious disputes that require the intervention of third parties. There are many cases where adjudication decisions are needed to resolve these conflicts such as petty crime, bankruptcy, construction related problems and so on. These serious disputes are usually resolved by organisations such as AIAC or the courts where the results will be determined by the adjudication panel. But before that, let’s refresh and learn a few things.
What is Adjudication Decision?
Let’s start by understanding what an adjudication decision is. An adjudication decision is a procedure for resolving legal disputes. Construction issues, bankruptcy, and even criminal trials are all possible scenarios. In simple terms, adjudication decisions aren’t simply for resolving construction conflicts; they’re also employed in the legal system as well as in courtrooms. Adjudication decisions are usually treated as final law or word, although there are situations when they are utilised to temporarily settle conflicts.
What is an Adjudication Panel?
Now, we are left with the question of who resolves these disputes? These disputes are usually resolved by board members that are known as the adjudication panel. The panel consists of 3 members, all of which are from different factions. Among the 3 members will be one who has no connection with the case whatsoever. Once the panel reviews the case that requires an adjudication decision, they will weigh the facts and decide what actions should be taken. So, what are the types of adjudication?
What are the types of Adjudication in Construction?
Considering the circumstances of why disputes happen in construction, the type of adjudication that can be seen is immediately enforceable. This is because, in construction, any delay that occurs may affect the overall completion of the project. Some of the negative impacts could be in completing the project due to negligence of payment, or safety issues with the constructed buildings as the party involved could be lacking the appropriate certification.
Some of the disputes that can be found are as follows:
- Non-payment – occurs when one or more parties involved in the construction process refuse to pay the agreed-upon price.
- Underpayment – occurs when one or more parties involved in the building process do not finish payment within the agreed-upon timeframe or refuse to pay in full. Scams, bankruptcy, discontent with construction, and other factors can all contribute to this.
- Non-certification occurs when one or more parties involved in the construction process (typically the ones constructing the buildings) lack the appropriate certification and documentation to complete the legalisation process. To put it another way, the construction party lacks the legal authority to begin building.
- Under-certification occurs when one or more parties involved in the project are not properly certified. This could cause issues as the party involved could cause issues that are potentially dangerous in terms of safety issues of the constructed project itself.