Adjudication Panel is a panel of members that is responsible for a quick and effective dispute resolution mechanism we know as Adjudication in the construction industry. If they see a breach of regulation in the construction contract or any defect in the house, building, or the delivered work, conflict in the timings, or even a possible termination of the contract, the panel steps in as advisory and investigative team members. They can be independently hired or they can be an internal panel. But is an adjudication panel using the process of adjudication really effective?
Adjudication was established in the year 1998 in the United Kingdom and has been since adopted in Malaysia as well. It is celebrated as an alternative dispute resolution method in matters of the construction industry without having to face any litigation or arbitration. Adjudication has played a vital role in forming alliances and parties in the construction industry and many now prefer the mechanism of adjudication to resolve any conflict and dispute.
Construction company generally needs interferences of panels such as adjudication panels. Because the industrial processes are so complex and solutions take time, adjudication provides a way to efficiently and swiftly handle complex matters. What takes over months of talking and dragging in the court may take a matter of just 28 days with adjudication. So not only construction companies are saving time but they are also saving money when handling matters of disputes in the construction contract. The adjudication is what ensures the smooth running of the construction contract and we cannot live to see a day without the help of this mechanism.
What are some of the common disputes that arise during construction? Frankly, the list is endless. It is no shock that construction projects always take additional time when meeting their deadline. Lots of unpredictable forces go into the play of building something. To handle these matters of delays, and the inability to meet deadlines, the scrutiny of adjudicators comes by. they also handle matters related to payments and advise on how they should be carried out. In construction, we also have to handle matters of negligence which adjudicator can be responsible for making a final decision.
The decision made by an adjudication panel is binding and it usually takes as the final result. But just because they can reach a decision rapidly, and can settle things for both parties does not mean it is always wise to resolve disputes with adjudication. The decision of an adjudication panel may not be the best for every construction contract. After all, they can only handle matters that are directly and only specified in the construction contract and nothing more. It is important to note that it also takes around 28 days to reach a final decision by the adjudication process. Within this time one of the parties that are in an unfair situation may lose money or valuable time that they could use to do something more favorable for the company.
Adjudication is not always a perfect solution, however despite having the flaws it is still considered one of the best to quickly resolve matters in construction contracts.