How Successful are Adjudication Applications?
Each year the Building Commission releases an annual report with various statistics relating to payment disputes referred to Adjudication under the Construction Contracts Act 2004 (WA). The 2017 report details 176 applications for adjudication made in the 1 July 2016 to 30 June 2017 period.
Each application for Adjudication is required to be dismissed or determined under the Construction Contracts Act 2004 (WA) (the “Act”). The Act now also allows applicants to withdraw their application if an agreement is reached between the parties privately before the Adjudication process can conclude.
An application may be dismissed for various reasons, including that it was not properly prepared in accordance with the Act. Of the 176 applications discussed within the 2017 report, 65 of these were dismissed or withdrawn.
A determination was made with respect to 111 applications and of these, 91 decisions contained an award of some value to the applicant. While the report does not detail individual successes, overall these statistics show that where an application is not dismissed or withdrawn, 82% of applicants received an award of some value.
However, when considered as a percentage of all applications for Adjudication under the Act, an award to the applicant in 91 decisions represents only 52% of all applications made.
Very obviously, the key to success largely depends on ensuring an application is determined rather than dismissed. Even if your claim is very strong on merit, an incorrectly prepared application may lead to dismissal. Overcoming this hurdle, the Adjudication process has proven it can be a valuable dispute resolution tool for applicants who obtain a determination.
You can read more about Olistan Consulting's Construction Contract Adjudication Services or contact us for further information.
Michelle Livesey-Giles, Director
0418 199 322