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I am please to commence this edition of the Society’s newsletter by recording my continued admiration and thanks for the efforts of our editor Lucy Garrett supported by my fellow executive board member Glenn Godfrey in producing a newsletter which continues to improve and is, I am sure members wi

In Melville Dundas Ltd (in Receivership) and Others v George Wimpey UK Ltd (Scotland) [2007] UKHL 18, the House of Lords dealt with the question of whether JCT provisions for payment following a determination on grounds of insolvency were contrary to Section 110 and 111 of the HGCRA 1996.

Section 107 of the 1996 Act has the effect that statutory provisions for adjudication apply “… only where the construction contract is in writing …”.

For nearly 8 months I have been receiving regular correspondence from a particular respondent in an adjudication where RICS nominated the adjudicator. From day 1 my correspondent has been simply adamant there was never a contract in writing, and therefore no adjudication could take place.

The question as to when the term Subject to Contract is effective rears its head again, this time in adjudication proceedings.

The Midlands Region’s most recent event was a talk by Abdul-Lateef Jinadu of Keating Chambers on the pitfalls the adjudicator should avoid. The joint event with the CIArb was well attended despite the hot weather.

The Construction Industry Consultation “improving payment practice in the Construction Industry” was published on 20th June 2007. The deadline for responses is 17th September 2007.

Section 110(1)(a) in the Housing Grants, Construction and Regeneration Act contains the most important obligation in the Act:

“Every construction contract shall provide an adequate mechanism for determining what payments become due and when…” (emphasis added).

The themes of this August Newsletter are contracts in writing and the DTI Review which as you will all know was published on 20 June 2007.

It is now 10 years since Parliament enacted the Housing Grants Construction and Regeneration Act 1996 (“the Act”) to set up a statutory framework for deciding construction industry disputes using a system of “rough justice”.

Adjudication is working. That is the general consensus of the industry and the process is serving users well. Any quick fire system for solving problems will throw up anomolies and the odd bad decision however I ask what process of dispute resolution is deviod of such problems.

We are always seeking to develop the Newsletter as a mark of Adjudication excellence; to disseminate leading opinion and best practice for adjudicators and practitioners; to inform about adjudication in the UK and throughout the world.

Several years ago His Honour Judge Anthony Thornton QC, during his keynote address at the Annual Adjudication Society, proposed that there should be a code of conduct for adjudicators. He thought that the Adjudication Society was well placed to develop such a code.

Introduction

A few books provide a short but concise introduction to the many forms of dispute resolution that now exist in the construction industry1. The Engineer’s Dispute Resolution Handbook, edited by Dr Robert Gaitskell QC, does just that.

The Building and Construction Industry Security of Payment Act 2004 (SOPA) came into operation on 1st April 2005. It is modeled after the New South Wales legislation of the same name. Essentially, the SOPA comprises two parts.

In Singapore, adjudication of claims for payment for work and supply of goods and services in the construction industry is facilitated by the Building and Construction Industry Security of Payment Act (“SOP Act”) and its accompanying Regulations, both of which came into operation on 1 April 2005.

Welcome to this bumper edition of the Newsletter. Matt Molloy, who will be well known to many readers, has produced a fascinating article giving a series of invaluable tips to all those involved in adjudications.

This is a bumper edition of the Newsletter.