New low cost adjudication service

The Technology and Construction Solicitors Association (TeCSA) has launched a fixed costs service for low value adjudication claims. By low value, TeCSA means claims up to £100,000, excluding VAT and interest.

Often, parties are put off from referring a dispute because of the costs that have to be paid to the Adjudicator.

In a recent adjudication, where I was acting for a client in a claim for £40,000, the Adjudicator’s fee was £5,000 plus VAT.

Under the TeCSA low value adjudication scheme, this fee would have been a fixed fee of £3,500. The fixed fees range from £2,000 for claims up to £10,000, to £5,000 for claims between £75,001 and £100,000.

The claims are limited to those which are financial claims such as interim payment, final payment, retentions, sums certified under a contract, damages, and loss and expense. They must also be construction contracts as defined by the Construction Act 1996.

If you have claims for payment, contact us as to advise on the best way of making your adjudication claim.