A cost-effective solution for Low Value Disputes

On 1st May 2020, the Construction Industry Council (“CIC”) published the new CIC Low Value Disputes Model Adjudication Procedure (“CIC LVD MAP”), 1st edition.

“This new adjudication procedure – which is Construction Act compliant – aims to provide a simple and cost-effective procedure to make adjudication more accessible for SME’s and others involved in lower value claims,” said SUM Limited Director Tom Flannery

The CIC LVD MAP sets out a streamlined adjudication procedure for “Low Value Disputes” (£50,000 or less) and links the Adjudicator’s fee – which is fixed – to the amount claimed, on a sliding scale, e.g. for a £25,000 dispute the Adjudicator’s fee is £3,500 (normally paid by the losing party). It is also clear from the procedure that it is intended that Parties may self-represent, rather than incur additional fees in that respect also.

If the Parties agree, or the relevant construction contract adjudication provisions are Scheme compliant, any Party wishing to use the procedure may apply to an Adjudicator Nominating Body such as the CIC or RICS (the appointment fee is the same irrespective of which participating nominating body you choose, at £300), and request the appointment of an Adjudicator in the usual way, using the appropriate application form indicating that you wish the CIC LVD MAP to apply.

“Reports suggest that the CIC LVD MAP has been well received and is already being utilised. Further details of the CIC LVD MAP can be found at www.cic.org.uk/services,” added Mr Flannery.