Adjudication of Development Agreement: Understanding the Basics
The process of adjudication of development agreement is essential to the smooth completion of any construction or development project. The aim of adjudication is to resolve the disputes that may arise between the parties involved in an agreement and to ensure that the project is completed successfully. This article aims to explain the basics of adjudication and how it works.
What is Adjudication?
Adjudication is a process in which a dispute that has arisen between the parties to a contract is resolved by an independent third party, known as an adjudicator. In construction, adjudication is a process in which a dispute is resolved through a binding decision. The adjudicator is appointed by the parties involved in the contract, or by a nominating body.
What is a Development Agreement?
A development agreement is a legal contract between two parties in which one party agrees to develop a specific piece of property while the other party agrees to finance the development. A development agreement outlines the responsibilities of both parties, including the timeline for completion, the budget, and the scope of the development.
How Adjudication Works in a Development Agreement
Adjudication in a development agreement happens when there is a dispute that the parties involved cannot resolve themselves. The parties then refer the dispute to an adjudicator who is appointed by them or by a nominating body. The adjudicator is independent and has no interest in the outcome of the dispute.
The adjudicator will then review all the information and evidence presented by both parties and will make a decision that is binding on both parties. The decision is usually made within 28 days of the adjudication hearing, and the parties must comply with it. If either party is unhappy with the decision, they can take further legal action.
The Benefits of Adjudication
Adjudication provides a quick and cost-effective way of resolving disputes. It allows parties to present their case to an impartial third party who can make a decision based on the facts and evidence presented. Adjudication can also help to maintain good working relationships between parties by resolving disputes before they become entrenched.
Adjudication of development agreement is an important process that ensures the smooth completion of any construction or development project. It provides a way for parties to resolve disputes that arise during the course of the contract. Adjudication is a quick and cost-effective way of resolving disputes, and it can help to maintain good working relationships between parties. Overall, it is an essential tool for the success of any development project.