Disputes of less than $50,000

Building Disputes Tribunal Fixed Fee Adjudication Service

There are numerous disputes that can and do arise on building and construction projects, particularly in relation to residential construction contracts.

The types of issues typically in dispute include disputes regarding renovations and alterations (including with the builder, homeowner, plumber, electrician, kitchen and bathroom installer and/or painter) and disputes regarding 'landscaping' works including the installation of driveways, swimming pools, decks and retaining walls. The disputes will often relate to the quality of the work done, the time it has taken or the cost of it in comparison to the expectations of the parties.

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 under building and construction contracts and reluctant payers often use that situation to their advantage.

To redress that situation, Building Disputes Tribunal provides a fixed price adjudication service for Low Value Claims of limited complexity (LVC’s). 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 on 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 (claims less than $50,000).

The process is straightforward, all of the documents required are available online and most parties find they can easily use the service without the assistance of lawyers or other professional advisors.

Special conditions attach to the Low Value Claim service including limiting the items that may be determined in any one adjudication proceeding to 3 only items at issue and limiting the number and extent of documents that may be submitted by a claimant in support of any claim (See Schedule of fees below).

The fixed price does not include any allowance for a conference of the parties or for inspection of the construction work or any other thing to which the dispute relates.

If any party or the Adjudicator requires a conference to be convened or an inspection to be undertaken, the Tribunal will charge a further amount of $500.00 inclusive of GST together with mileage/travel expenses and this amount will be required to be paid to the Tribunal before the Adjudicator’s determination will be given to the parties.

In the event that a claim presents undue complexity, notwithstanding the low value of the claim or the limited number of matters at issue, the Tribunal retains the right to decline any such application for the LVC adjudication service at its sole discretion and from which decision there shall be no right of appeal.

More complex claims may of course be determined by the Tribunal Adjudicators, but under the Tribunal’s General Claims procedures and the cost of such adjudications will be determined by the time engaged on the duties of such adjudications by the Adjudicator together with any expenses incurred by the Adjudicator in the execution of those duties.

A Notice of Acceptance of Appointment as Adjudicator 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 security for the Adjudicator’s fees and expenses.

Schedule of Fees for Low Value Adjudication Service:

Building Disputes Tribunal provides a fixed price adjudication service for Claims less than $50,000, also referred to as Low Value Claims (LVC’s).

The adjudication fees (inclusive of application fee and GST) for Low VC’s are as follows:

Code	Amount of claim	Fee	Conditions
LVC5	Less than $5,000.00	$1,250.00	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 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 up to $9,999.99	$ 2,350.00	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 up to $19,999.99	$ 3,550.00	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 up to $29,999.99	$ 4,750.00	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 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 up to $39,999.99	$ 6,000.00	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 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 up to $49,999.00	$ 7,250.00	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 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: $500.00

Plus mileage/travel expenses

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

To find out how to start an adjudication, click here