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Payment Disputes

Low Value Disputes

Wilsons of Cambridge are construction law specialists in low value disputes, experienced in advising Employers, Main Contractors and Subcontractors across a number of construction sectors in resolving payment issues. With over 35 years’ experience in contracting environment, we are well placed to be your party representative and assist with payment disputes, helping to resolve your low value dispute through adjudication and recover your money.

Q: What is Adjudication?

A: Adjudication is a form of Dispute Resolution for the Construction Industry with a timescale of an Adjudicators Decision to be made within 28 days from the referral. (In a limited instances this can be extended.) This Decision is binding upon the parties involved (unless over turned on limited grounds by a Court).

The right to adjudicate is given by law thanks to the Housing Grants Construction Act 1998 which was updated with the Economic Development Construction Act 2011.

Follow our link for further details of the Construction Adjudication.

The acts cover all Construction Activities.

Q: What is a Construction Activity?
A: Broadly speaking, from the Construction Act, it covers construction, alteration, repair, maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not).

There are some exclusions for instance:

  • Oil & gas drilling
  • Extraction of minerals
  • Plant and machinery associated with power generation or water treatment
  • Processing or bulk storage (exc warehouses) of chemicals, pharma, oil, gas, steel or food.

The Construction Act covers adjudication and also payment provisions.

These payment provisions include:

  • Entitlement to stage payments;
  • Dates of when a notice identifying how much should be paid is issued together with the date for receiving payment;
  • These payment provision may be contained within a contract but should be compliant.
  • Link to our page on Construction Payments.

 

Follow our link for further details of the Construction Act.

If you have a dispute with a value less than £100,000 there are options to use a Low Value Dispute procedure. These include a cap or fixed price fee for the adjudicator. The Construction Industry Council has produced a low value disputes Model Adjudication Procedure (CIC LVD MAP). A full copy of this Procedure is available here.

Other Procedures are also available.

If you use the CIC LVD MAP, the fees for the adjudicator are capped as follows:

Dispute Value                    Fee

Up to £10,000                   £2,000

£10,001 – £25,000             £2,500

£25001 – £50,000               £3,500

£50001 – £75,000               £4,500

£75001 – £100,000             £5,000

Meeting and site visits incur an additional fee if so required.

Other costs to consider are for someone to prepare / represent you. Wilsons of Cambridge are happy to represent you and subject to the type of dispute, we can also offer a fixed fee. Please contact us to discuss further.

If you bring the dispute (or refer), there is a fee for the adjudicator nominating body.

We are based in Cambridge, with fast broadband offices. Our experience covers projects throughout East Anglia, London & the South East and across the United Kingdom and we can help you prepare for your low value adjudication being your LVD Party Representative.

Contact us to discuss more about your particular project requirements:

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