Building Disputes Resolution and the New Construction Contracts Act

21 March, 2017 | Nathan Tetzlaff

The  Construction Contracts Amendment Act 2015 has been implemented progressively since 1 December 2015, changing the face of dispute resolution arising from construction contracts in New Zealand. The new Act provides a speedy and cost effective resolution to disputes arising under a Construction Contract with the primary purpose of improving cash flow within the construction industry.

 If the adjudicator determines that you must pay an amount to the claimant, you must pay that amount within 2 working days of being given a copy of the determination, or by a later date specified by the adjudicator.

Cost of Adjudication

Often to determine a dispute in the ordinary course of litigation, the cost involved, length of time and stress can outweigh the benefits and often leads to the parties deciding that it is not worth making any steps to recover the unpaid amount or to resolve the dispute. Adjudication can be very useful in hearing any level of claim for a fixed fee (this can vary depending on the level of the amounts involved).
An adjudicator must determine the dispute within 20 working days after the time for service of the response (which can be extended to a further ten working days by the adjudicator).

An adjudicator’s determination is enforceable. A Claimant may proceed to enforce a determination as a debt due in any Court together with the actual and reasonable costs of recovery, or by entry as a Judgment in the District Court.

The key to achieving success in adjudication is to have a concise Claim drafted by a lawyer that clearly outlines the relevant law and contractual ability to enforce your claim.