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Cost of Adjudication in Construction Disputes
Understanding the Cost of Adjudication (What is it?)
Adjudication is a dispute resolution process commonly used in the construction industry, where an independent third party (the adjudicator) is appointed to make a determination that is temporarily binding on the parties involved. In Australia, adjudication is governed by the Building and Construction Industry Security of Payment Acts (SOPA), which vary across states and territories but share the common goal of promoting fast and fair resolution of payment-related disputes. This Act ensures that disputes concerning payment under construction contracts can be resolved in a manner that is not only expeditious but also cost-effective, thereby safeguarding cash flow within the industry – a critical component for the completion of projects.
One of the key advantages of adjudication is its cost-effectiveness. Compared to formal litigation or arbitration, the cost of adjudication is generally lower and the process significantly faster—typically delivering a decision within 28 to 42 days. This makes it a preferred option for many in the industry looking to safeguard project timelines and manage financial risk. Understanding the cost of adjudication—both in terms of time and resources—is essential for parties seeking practical solutions without escalating legal expenses.
Adjudication is particularly suited for resolving disputes under construction contracts, including disagreements over delays, quality of workmanship, scope of work, non-payment, or any other matter under the contract where there is a disagreement. Early identification of potential disputes and a clear understanding of the adjudication process can help contractors, subcontractors, and principals avoid costly project delays and maintain healthy cash flow.
Need help resolving a payment dispute without the legal cost blowout? Speak with CCR’s Adjudication Experts Today!
Common Pain Points Adjudication Helps Solve
In construction, payment delays and disputes can quickly lead to lost time, added costs, and relationship breakdowns. Adjudication addresses these pain points head-on, helping contractors and consultants resolve issues efficiently and affordably.
Disruption to Project Timelines
Unresolved disputes can bring a project to a halt.
Adjudication delivers a decision fast – often within 28–42 days—minimising disruption and keeping your project on track.
High Legal Costs
Litigation and arbitration are costly and time-consuming.
The cost of adjudication is lower, with a simplified process that allows businesses to resolve disputes without draining resources.
Complex, Industry-Specific Disputes
Legal forums may not fully grasp construction nuances.
Adjudicators are construction-savvy professionals, meaning decisions are informed by real-world experience.
Strained Business Relationships
Prolonged legal conflict damages trust and collaboration.
Adjudication resolves issues quickly – allowing parties to move forward and maintain working relationships.
Cash Flow Blockages
Unpaid claims impact your ability to operate and deliver.
With a binding interim decision, adjudication helps you unlock payments and maintain financial stability.
Don’t let payment disputes derail your project.
Contact CCR to explore if adjudication is the right step for your situation.
How CCR Can Help
At CCR, we specialise in adjudication under the Security of Payments Act (SOPA) – a service we’ve mastered since its introduction in NSW. We help contractors, consultants, and suppliers recover unpaid money efficiently, strategically, and with full awareness of the cost of adjudication.
Whether you’re initiating a claim or responding to one, CCR helps you navigate adjudication with confidence and clarity. Book a free consultation today.
FAQs
CCR is experienced in all these methods and can guide you toward the most effective pathway for your specific dispute.
The cost of adjudication in Australia varies depending on the complexity of the dispute, the adjudicators fees, and the amount of documentation required. However, it is general more cost-effective than going to court or arbitration, making it a practical option for resolving payment disputes affordably.
Yes. If you are owed money under a construction contract, adjudication under the Security of Payments Act may be available to you. CCR can assess your eligibility and help you prepare a strong, compliant application to recover what youre owed.
CCR ensures your claim or defence is strategically prepared, clearly presented, and supported by the right evidence. Our experienced team streamlines the process to help reduce the cost of adjudication and improve your chances of a favourable outcome.
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