Construction Dispute Resolution
Expert-defined terms from the Undergraduate Certificate in Construction Law and Contracts course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
**Adjudication** #
**Adjudication**
In the context of Construction Dispute Resolution, Adjudication is a statutory p… #
It is a quick and cost-effective method of dispute resolution, which is binding on the parties involved. The process is initiated by one party giving notice of their intent to refer a dispute to adjudication. An adjudicator is then appointed, and they have 28 days to reach a decision, which can be extended by 14 days if necessary. The adjudicator's decision is binding unless and until it is revised by arbitration or litigation.
**Alternative Dispute Resolution (ADR)** #
**Alternative Dispute Resolution (ADR)**
Alternative Dispute Resolution (ADR) is a process used to resolve disputes outsi… #
ADR includes a range of approaches, such as mediation, arbitration, adjudication, and expert determination. ADR is often used in construction disputes as it can be quicker, less formal, and less expensive than litigation.
**Arbitration** #
**Arbitration**
Arbitration is a form of ADR where a dispute is resolved by an independent third… #
The arbitrator is chosen by the parties involved and is usually an expert in the field related to the dispute. The arbitrator will hear evidence from both sides and make a binding decision, known as an award. Arbitration can be either binding or non-binding, depending on the agreement between the parties.
**Back to Back Contracts** #
**Back to Back Contracts**
Back to back contracts are contracts that are linked together in such a way that… #
This type of contract is often used in construction projects, where a main contractor will have a contract with the employer and then subcontract certain aspects of the work to other contractors. The subcontract will contain the same terms and conditions as the main contract.
**Binding Authority** #
**Binding Authority**
A binding authority is a legal term used to describe the power given to an indiv… #
In the context of Construction Dispute Resolution, an adjudicator or arbitrator is given a binding authority to make a decision in a dispute.
**Bond** #
**Bond**
A bond is a type of financial guarantee that is used in construction projects to… #
There are two main types of bonds used in construction: performance bonds and payment bonds. A performance bond guarantees that the contractor will complete the work to the required standard, while a payment bond guarantees that the contractor will pay their subcontractors and suppliers.
**Challenge** #
**Challenge**
A challenge is a process where a party in a dispute questions the impartiality o… #
A challenge can be made on a number of grounds, such as bias, conflict of interest, or lack of expertise. If a challenge is successful, the adjudicator or arbitrator will be removed from the case and a new one appointed.
**Claim** #
**Claim**
A claim is a demand for payment or compensation made by one party in a construct… #
A claim can be made for a variety of reasons, such as non-payment, defective work, or delay. The claim will usually be made in writing and will set out the details of the dispute, the amount claimed, and the grounds for the claim.
**Consensus** #
**Consensus**
Consensus is the agreement between parties in a dispute #
In the context of Construction Dispute Resolution, consensus is often reached through mediation or negotiation. Consensus is generally preferred over a decision imposed by an adjudicator or arbitrator, as it is more likely to preserve the relationship between the parties.
**Construction Contracts Act (CCA)** #
**Construction Contracts Act (CCA)**
The Construction Contracts Act (CCA) is a piece of legislation in Ireland that r… #
The CCA provides for the use of adjudication as a means of resolving disputes arising under construction contracts. The CCA applies to both commercial and domestic construction contracts.
**Construction Law** #
**Construction Law**
Construction Law is the area of law that deals with the legal aspects of constru… #
Construction Law covers a wide range of issues, including contract law, planning and development, health and safety, and dispute resolution. Construction Law is a complex and specialized area of law that requires a deep understanding of the construction industry.
**Defects Liability Period** #
**Defects Liability Period**
The Defects Liability Period (DLP) is the period of time after the completion of… #
The DLP is usually specified in the construction contract and can vary in length depending on the project.
**Dispute Resolution** #
**Dispute Resolution**
Dispute Resolution is the process of resolving disputes between parties #
Dispute Resolution can take many forms, including litigation, arbitration, mediation, and negotiation. Dispute Resolution is an important part of Construction Law, as disputes are a common occurrence in the construction industry.
**Expert Determination** #
**Expert Determination**
Expert Determination is a form of ADR where a dispute is resolved by an independ… #
The expert is usually an expert in the field related to the dispute and is chosen by the parties involved. The expert will hear evidence from both sides and make a binding decision, known as a determination. Expert Determination is often used in technical disputes, such as disputes over design or specification.
**FIDIC** #
**FIDIC**
FIDIC (the International Federation of Consulting Engineers) is an organization… #
FIDIC has developed a suite of standard construction contracts that are widely used in the construction industry. The FIDIC contracts are known for their balanced approach to risk allocation and their use of plain language.
**JCT** #
**JCT**
JCT (the Joint Contracts Tribunal) is a UK #
based organization that develops and publishes standard form construction contracts. The JCT contracts are widely used in the UK construction industry and are known for their clarity and comprehensiveness.
**Litigation** #
**Litigation**
Litigation is the process of taking legal action through the courts #
Litigation is often used as a last resort in construction disputes, as it can be expensive, time-consuming, and damaging to relationships. However, litigation may be necessary where the dispute involves complex legal issues or where the parties are unable to reach a settlement through other means.
**Main Contractor** #
**Main Contractor**
A Main Contractor is the lead contractor on a construction project #
The Main Contractor is responsible for managing the project and coordinating the work of subcontractors. The Main Contractor will usually have a contract with the employer, setting out the terms and conditions of the project.
**Mediation** #
**Mediation**
Mediation is a form of ADR where a dispute is resolved with the help of a neutra… #
The mediator will facilitate discussions between the parties and help them to reach a mutually acceptable solution. Mediation is often used in construction disputes as it is a flexible and collaborative process that can preserve relationships between the parties.