Resolution of Building Disputes for Builders

Builders have so many responsibilities during a construction project and are often expected to complete the project within time and budget without any recognition of the issues that builders face with clients and subcontractors from time to time.

Issues that arise with owners can include not getting paid for work completed, disputes as to the scope of the contract works, the cost of variations and the additional time the variations can take and allegations that the work has not been properly completed.

Issues that can arise with subcontractors include subcontractors not turning up on the agreed day, costs being more than quoted or provided for in any lump sum contract and the quality of the work being unacceptable.

Often builders are supported by a professional organisation and Building Disputes Tribunal recognises that and is working alongside key organisations to provide a cost effective, timely and straightforward service for the resolution of construction disputes. Our services include adjudication under the Construction Contracts Act 2002, arbitration under the Arbitration Act 1996 and mediation.

We have created a fixed fee adjudication service aimed specifically at disputes of limited complexity that have a value of $40,000 or less. This service can be used with or without lawyers and is intended to provide a comprehensive and binding service for the resolution of those smaller disputes which may otherwise be overlooked given the uncertainty builders can face with legal and other fees.

Tell me more about adjudication?

Adjudication is a dispute resolution process that is intended to resolve disputes in a quick and relatively inexpensive manner. It is only available for use by parties to a construction contract who have a dispute arising during the completion of the construction works.

It is a similar process to a Court proceeding with the dispute arising under the building or construction contract being referred to an independent 3^rd party who reviews the ‘evidence’ on each side before making a decision that is binding and enforceable. The Construction Contracts Act 2002 establishes the procedural requirements to be followed when referring a matter to adjudication which is summarised on the Building Disputes Tribunal website.

Adjudication does not necessarily achieve a final settlement of any dispute because either of the parties has the right to refer the same dispute to be hard afresh at Court or in arbitration (where the contract provides). However, in New Zealand, the majority of adjudication determinations are accepted by the parties and the matter is no litigated further.

It is different to mediation as mediation relies on the consent of the parties to the exploration of issues between them with a neutral 3^rd party who will not be making an enforceable decision.

Adjudication is also unrelated to the procedure used in the Weathertight Homes Resolution Service for the resolution of “leaky home” matters but can, in certain situations, be used to resolve a leaky home dispute should the claimant wish to refer the dispute to adjudication rather than rely on the WHRS.

We invite you to review our website and to telephone us if you have any questions.