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ARTICLE · 10 APRIL 2016

Quick and dirty adjudication - it is quick but there is a limit to how dirty

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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One lesson is that parties should not place too much time pressure on adjudicators in more complex payment disputes.

AustraliaLitigation, Mediation & Arbitration

In the recent decision of BGC Contracting Pty Ltd v Citygate Properties Pty Ltd [2016] WASC 88, the Supreme Court of Western Australia quashed two adjudication determinations made by the same adjudicator under the Construction Contracts Act (WA) 2004 (Act).

The first determination was quashed because the adjudicator had not determined the application within time. The second determination was quashed on the basis of jurisdictional error. At the heart of the Court's decision with respect to the second determination was a finding that the adjudicator's reasons did not demonstrate a rational approach to determining the relevant payment dispute.

This decision builds on a growing body of case law which emphasises that, whilst adjudications under the Act are intended to provide a rapid and informal means of resolving payment disputes, adjudicators must demonstrate, by their determinations, that they have engaged with all issues and adopted a rational approach

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