FEES & EXPENSES - ADJUDICATION

The cost of determining claims for amounts under $50,000.00 (including GST) that meet the Tribunal’s LVC criteria is fixed according to the amount in dispute.

For General Claims there is simply no means of accurately determining how much an adjudication may cost as the cost depends on many factors including the number and complexity of the matters in issue, the volume of documentation and evidence provided, the manner in which the documentation and other evidence is provided and whether a party chooses to engage legal or other expert advisers to assist in the preparation of a claim or response.

There are two types of costs that may be incurred in an adjudication:

The fees and expenses of the Adjudicator.

A party’s own legal and administration costs and expenses.

Adjudicator Fees and Expenses

The general presumption is that the parties will contribute to the fees and expenses of the Adjudicator in equal proportions.

However, an Adjudicator may determine that the parties are liable to contribute to his or her fees and expenses in unequal proportions if in the Adjudicator’s view, the claimant’s claim or the respondent’s response was without substantial merit, or a party acted in a contemptuous or improper manner during the adjudication.

A party’s own costs and expenses

Once again, the presumption is that each party will bear its own costs and expenses associated with the adjudication process.

However, an Adjudicator may determine that a party’s adjudication costs and expenses must be met by any of the parties to the adjudication if the Adjudicator considers that a party has caused those costs and expenses to be incurred unnecessarily by bad faith on the part of that party or allegations or objections by that party that are without substantial merit.

Generally each party will bear its own internal administrative and resourcing costs and expenses.

Security to Secure the Appointment of an Adjudicator

Before the Building Disputes Tribunal will issue a Notice of Acceptance on behalf of any Adjudicator, it requires the scheduled amount of security for the Adjudicator’s fees and expenses to be paid into its trust account. The amount of security is determined on the basis of the amount in dispute. The security is not an estimate of the cost of the adjudication which cost will ultimately be determined by the amount of time that an Adjudicator is required to expend on the duties of the matter.

In almost every case the claimant will pay the security amount required to secure the appointment of the Adjudicator immediately upon issue of the Notice of Adjudication when making an application for the appointment of an Adjudicator. In such cases the claimant will, in its Notice of Adjudication and subsequently in its claim, seek a determination from the Adjudicator that the respondent or any other party is liable to meet the whole of the Adjudicator’s fees and expenses and to reimburse the claimant for the security paid.

In the Notice of Acceptance the Tribunal will invite the respondent to contribute an equal share of the amount paid as security by the claimant on the basis that the Act contemplates that the parties will bear their own costs and expenses and meet the Adjudicator’s fees in equal proportions unless the grounds in section 56(1) and 57(4) are made out.

In the event that the respondent pays that amount, the Tribunal will immediately issue the respondent with a tax invoice and refund the claimant in that same amount leaving the Adjudicator to ultimately determine the issue of costs between the parties.

Schedule of Adjudication fees and conditions

1.0 Application/Nomination Fee

The Tribunal does not charge an application fee for the nomination of Adjudicators.

2.0 Adjudicator’s Fees and Expenses

Claims involving amounts in dispute less than $50,000.00 including GST

We understand that the cost of having building or construction disputes resolved, or uncertainty about those costs, prevents many people from recovering money that they are properly entitled to be paid under building and construction contracts and reluctant payers often use that situation to their advantage. This is particularly so where the amount in dispute is relatively small by industry standards - claims for less than $50,000.00 including GST.

To redress that situation, the Building Disputes Tribunal provides a fully administered fixed fee adjudication service for Low Value Adjudication Claims (LVC’s) of limited complexity (Please note the special conditions that attach to this offer stated below). This service is aimed at providing parties to construction disputes with certainty as to the cost of taking a dispute to adjudication so that parties can make informed and considered decisions as to whether to proceed down the adjudication pathway. This unique service ensures that the cost of having a low value claim resolved by adjudication is not disproportionate to the amount in dispute.

Alternatively, parties are welcome to refer claims for less than $50,000.00 to adjudication under our General Claim Service in which case the Adjudicator’s fees and expenses will be calculated according to the time engaged on the duties of the adjudication by the Adjudicator together with any expenses incurred by the Adjudicator in the execution of those duties.

Claims involving amounts in dispute greater than $50,000.00 including GST

All claims involving amounts in dispute greater than $50,000.00 including GST are dealt with under our General Claim Service. Please note that any amount prescribed as security for the Adjudicator’s fees and expenses for a General Claim is a nominal and arbitrary amount only and is not an estimate of the cost of the adjudication (see 2.2 below).

If you have any questions in relation to fees and expenses for adjudication, or the requirement for security in relation to those fees and expenses, please do not hesitate to contact us on:

phone: + 64 9 486 7143

or email: registrar@buildingdisputestribunal.co.nz

2.1 Security for Adjudicator’s Fees and Expenses - Fixed Fee Low Value Adjudication Claims (LVC’s)

The Tribunal provides a fully administered fixed fee adjudication service for Low Value Adjudication Claims (LVC’s) of limited complexity (Please note the special conditions that attach to this offer stated below).

A Notice of Acceptance of Appointment as Adjudicator will not be served on the parties to the adjudication by the Tribunal until the parties have paid (in clear funds) into the trust account of the Tribunal the required security for the Adjudicator’s fees and expenses.

The adjudication fees (inclusive of GST) and the required security amounts for LVC’s are as follows:

Code	Amount of claim	Fee	Conditions
LVC5	≤ $4,999.99	$1,500.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 15 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee. Limited reasons only provided
LVC10	$5,000.00 ≤ $9,999.99	$ 2,500.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 15 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee.
LVC20	$10,000.00≤ $19,999.99	$ 3,750.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 20 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee.
LVC30	$20,000.00≤ $29,999.99	$ 5,000.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 30 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee.
LVC40	$30,000.00≤ $39,999.99	$ 6,250.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 40 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee.
LVC50	$40,000.00≤ $49,999.99	$ 7,500.00	Claim limited to 3 items at issue*. Documents that Claimant may file in support of the claim limited to: Notice of Adjudication, Adjudication Claim, and Contract Documents together with 50 single sided A4 pages (font size no less than 12) of submissions and evidence in relation to the claim and the matters at issue. No conference of the parties or inspection of construction work is included in the fixed fee.

Conference of the parties and/or inspection of construction work or any other thing to which the dispute relates, at the request of any party or at the Adjudicator’s discretion (The additional fee for a conference and/or inspection is payable to the Tribunal prior to release of the Adjudicator’s determination)

Fee: $750.00
Plus mileage/travel expenses

*The number of items at issue that may be dealt with under the fixed price LVC service is strictly limited to 3 i.e. a total number of issues in the claim of 3 variations, or 3 items of allegedly defective work, or extension of time for 1 event and 2 variations etc.

In the event that a claim or response present undue complexity, or the submissions and evidence submitted in support of the claim exceed the permitted number of documents notwithstanding the low value of the claim or the limited number of matters at issue, the Tribunal may, at its sole discretion, decline to provide the adjudication on a fixed fee basis under the LVC scheme.

In that event, the Tribunal will advise the parties accordingly and the adjudication will simply revert to a General Adjudication and the cost of the adjudication will be determined by the time the Adjudicator is required to expend on the duties of the matter together with any expenses incurred by the Adjudicator in the execution of those duties.

2.2 Security for Adjudicator’s Fees and Expenses – General Claims

For General Adjudication Claims a Notice of Acceptance will not be served on the parties to the adjudication by or on behalf of a Tribunal Adjudicator until the claimant, or the parties jointly, have paid (in clear funds) into the trust account of the Tribunal a deposit as security for the Adjudicator’s fees and expenses in accordance with the following table:

AMOUNT OF CLAIM	SECURITY PAYMENT REQUIRED
≤ $24,999.99	$6,000.00
$25,000.00 ≤ $49,999.99	$8,000.00
$50,000.00 ≤ $99,999.99	$10,000.00
$100,000.00 ≤ $499,999.99	$15,000.00
$500,000.00 ≤ $999,999.99	$17,500.00
≥ $1,000,000.00	$20,000.00

Please note that any amount paid as security for the Adjudicator’s fees and expenses is a nominal amount only and is not, and shall not, be considered an estimate of the cost of the adjudication which shall be calculated according to the time engaged on the duties of the adjudication by the Adjudicator together with any expenses incurred by the Adjudicator in the execution of those duties.

In the event that the Adjudicator’s fees and expenses prove to be less than the amount held by the Tribunal as security, the Tribunal will provide the Adjudicator’s determination to the parties to the adjudication as soon as practicable after the Adjudicator has made his or her determination and the Tribunal will disburse the balance of the monies held as security to the parties in the manner determined by the Adjudicator.

In the event that the Adjudicator’s fees and expenses prove to be greater than the amount held as security, the parties will be advised of the Adjudicator’s actual fees and expenses by the Tribunal and the parties will be requested to pay the balance in order to uplift the award. When the balance is paid in full, a copy of the determination will be provided to each of the parties to the adjudication by the Tribunal.

3.0 When is Payment required?

Payment of the security for the Adjudicator’s fees and expenses is required to be made at the time the application for appointment of an Adjudicator is filed with the Tribunal. No administrative or procedural steps will be taken by the Tribunal until payment of the required security is made in full and the funds are clear.

In the event that the Adjudicator’s fees and expenses are greater than the amount held as security, the parties must pay the balance within two (2) working days of receipt of notification by the Tribunal of such additional fees and expenses.

4.0 Liability for Payment

The parties are free to make any arrangements as between them for payment of the adjudication fees and expenses after a dispute arises.

However, and notwithstanding any such agreement as between the parties, the parties shall at all times be jointly and severally liable for the Adjudicator’s fees and expenses, including any fees and expenses incurred by the Adjudicator in the absence of a determination fixing the costs and expenses of the adjudication, together with any additional costs howsoever incurred by the Tribunal in recovering any overdue monies on a full indemnity basis.

5.0 Methods of Payment

Payment of all Tribunal fees and adjudication expenses may be made by cheque, direct credit, or by credit card (Visa and MasterCard only). Please note that if paying by credit card there is a merchant transaction fee of 2.75% payable in addition to the fixed fee for LVC’s or the specified security amount for any General Adjudication Claim or for any additional invoiced amount.

6.0 Cancellation Fees

In any case where a party notifies the Adjudicator in writing that a scheduled conference or inspection is to be vacated, whether or not the dispute between the parties has been settled, or the conference or inspection is adjourned by agreement, or the adjudication claim is withdrawn by the claimant for any reason whatsoever, and the notice is received by the Adjudicator during ordinary business hours between ten (10) and six (6) working days from and including the date of the scheduled conference or inspection, the Tribunal will charge a cancellation fee in the amount of 50% of the Adjudicator’s daily charges.

If such notice is received five (5) working days or less from and including the date of the scheduled conference or inspection, the Tribunal will charge a cancellation fee in the amount of 75% of the Adjudicator’s daily charges.

In the event that the dispute is settled or the adjudication claim is withdrawn by the claimant, the Adjudicator’s fees and expenses including any entitlement to cancellation fees will be deducted from the amount paid as security for the Adjudicator’s fees and expenses. The balance of the security monies will be refunded to the parties in the proportions in which the payment has been made unless the parties agree otherwise and instruct the Tribunal accordingly in writing within two (2) working days of notice of settlement or withdrawal of the claim.

7.0 Administration Fee payable on Withdrawal or Settlement of Claim

In any case where an adjudication claim is withdrawn, or the dispute between the parties is resolved after receipt by the Tribunal of an application to appoint an Adjudicator and before the provision of a determination, the Tribunal will charge a fee being not less than $750.00 in respect of the fees and expenses incurred in relation to the administration of the adjudication up to and including the date on which the adjudication claim was withdrawn or the Tribunal was notified that the dispute had been resolved.