No matter how good a subcontractor might think their claim for delay costs, extras or variations is, many come out the wrong side of a claim due to poor contract administration. For example if a subcontractor is claiming a extra or variation then they must notify the contractor is writing confirming all details of the extra/variation and get approval in writing. Otherwise the claim will not stack up. Similarly if a subcontractor is making a compensation claim because of delay beyond their control then they must notify the contractor in strict accordance with the contract. Very often subcontractors' otherwise genuine claims for payment fall down because the notice content was wrong, they missed strict timelines under the contract notification requirements or they did not recite the relevant contract provision. So the politicians and the great and good of the construction industry can crow about the virtues of Adjudication as the panacea for all subcontractors woes. However the reality is that genuine claims are only made valid if the subcontractor is adept and familiar with the construction contract. Leman solicitors regularly advise subcontractors on how to deliver valid claims.
Section 6 of the Construction Contracts Act, 2013 provides a right for a party to a construction contract to refer a payment dispute for adjudication. A payment dispute for the purposes of the Act is any dispute relating to payment arising under the construction contract. Adjudication provides a mechanism for the resolution of a payment dispute where the dispute is referred by one of the parties to an independent third party, an Adjudicator, who will make a decision on the dispute.