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Adjudication: a guide

5 replies [Last post]
Wed, 2007-11-07 07:17
Skan Bu
User offline. Last seen 14 years 35 weeks ago. Offline
Joined: 29 May 2006
Posts: 118
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Hi,

Adjudication in UK say JCT form of contract.

What are the steps or relevant points:
Say a sub contractor (say groundwork&conrete)had not been pay for some works carried out for a Main Contractor on a project. The S/C obviously think the works are extra and was carried out say in December 06 and now in June 07, the MC still do not wish to pay.
What are the steps towards a possible adjudication?
Assume I am the site QS for the S/C and need to brief my Director, initially in bullet points & expand later & what he should consider first without going to a consultant.
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Replies

Sun, 2007-11-11 06:57
#1
Larry Rino
User offline. Last seen 2 years 5 weeks ago. Offline
Joined: 25 Oct 2007
Posts: 64
Groups: Petro-Chem / Oil & Gas
Scan,

Check the link below, this USERS’ GUIDE TO ADJUDICATION will provide answers to some of your question:

http://www.cic.org.uk/services/UsersGuide.pdf

Regards.
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Sun, 2007-11-11 05:36
#2
Skan Bu
User offline. Last seen 14 years 35 weeks ago. Offline
Joined: 29 May 2006
Posts: 118
Groups: None
Hi,
Thanks for the reply.

1) let assume that it is "grey" area, we think it qualified as CHANGE but MC argue as not. That is why whether it should be taken to an Adjudicator to decide.

2)Yes agree with you to find out MC reasons
But let assume we do not accept their argument/reasons
Should all these be in an official written reply?
Does all these reasons matter or usein our adjudication argument?

3) What is the avarage Adjudicatior’s fee?
What costs are involve in bring an issue to the adjudication?

1. Contract Documentation that qualifying the unpaid work as "Change" and your "Entitlement to Claim".- yes I agree


2. Written instruction Re: additional work from MC. - this could be difficult if none issued

3. All logs and records that you perform the addl. work. - yes, our record only

4. Detailed cost of addl. work. - yes our account build up

Other relevants to consider:
5. MC’s possible grounds of not paying the work. Prenset your reasons to weaken MC’s grounds. - yes I agree

6. Impacts of Claim into you Company e.g. cost, schedule including your relation to MC or to MC’s associate companies, arbitration records, etc. - well if the SC go down, relation is not much good. Why work for someone who bully you & you suffer for them?

ANY others who have had experience with the JCT & gave add to the list or points to be consder?

My list will probablly start with:

1)What are the differeneces?
2)Is it worth challenging the MC for that amount?
3)If yes, what are the cost involve in bring it to the challenge?
4)What alternative & their associated cost?
5)What do the Contract said, in this case, the JCT?

Can otehrs contribute?
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Wed, 2007-11-07 10:57
#3
Larry Rino
User offline. Last seen 2 years 5 weeks ago. Offline
Joined: 25 Oct 2007
Posts: 64
Groups: Petro-Chem / Oil & Gas
Skan,

Please find my reply below:

1)Let assume that the we believe there is a vast change.
Ans: Whether its small, the question is, "Is it qualified as Change in the Work by the Contract?"

2) Let assume that the MC not willing to issue any "Change/Variation in the Work".
Ans: MC has strong stand on this issue, try to find out their grounds of rejection.

3) Let assume that the unpaid work claiming is >£250k
Ans: Amount is reasonable for having Consultant but not bringing to Adjudication (Adjudication fee may be costly, check who will pay in you Contract).

What do you think as a 1st step meeting with the director of this small S/C and what should we be considering and how to go about the adjudication route?
Ans: Present to Director your
Evidences such as:
1. Contract Documentation that qualifying the unpaid work as "Change" and your "Entitlement to Claim".
2. Written instruction Re: additional work from MC.
3. All logs and records that you perform the addl. work.
4. Detailed cost of addl. work.
Other relevants to consider:
5. MC’s possible grounds of not paying the work. Prenset your reasons to weaken MC’s grounds.
6. Impacts of Claim into you Company e.g. cost, schedule including your relation to MC or to MC’s associate companies, arbitration records, etc.

I am hoping that after this discussion we can sort of have a "tick" boxes of the items to be considered prior to going down the adjudication route.

Until then your Director can decide to whether to pursue the Claim to MC, hire Consultants and Prepare Claims Document or bringing to Adjudication (Please check more info’s about Adjudication before doing it so).

Good luck.
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Wed, 2007-11-07 09:48
#4
Skan Bu
User offline. Last seen 14 years 35 weeks ago. Offline
Joined: 29 May 2006
Posts: 118
Groups: None
Hi Larry,

Thanks

1)Let assume that the we believe there is a vast change.
2) Let assume that the MC not willing to issue any "Change/Variation in the Work".
3) Let assume that the unpaid work claiming is >£250k

What do you think as a 1st step meeting with the director of this small S/C and what should we be considering and how to go about the adjudication route?
I am hoping that after this discussion we can sort of have a "tick" boxes of the items to be considered prior to going down the adjudication route.
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Wed, 2007-11-07 09:25
#5
Larry Rino
User offline. Last seen 2 years 5 weeks ago. Offline
Joined: 25 Oct 2007
Posts: 64
Groups: Petro-Chem / Oil & Gas
Skan,

I suggest you validate the unpaid works whether it can qualify as a "Change/Variation in the Work".
If so, it should be substantiated with any written instruction from MC to carry out the extra work.
And by the daily records of manpower, equipment & material consumed that you kept, you can derive the cost of change and request for Change/Variation Order.
Please consider the cost of the unpaid work you are claiming vs. the cost of Consultant, if its really worth getting Consultant services.

Hope these helps.
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