Alternative Dispute Resolution (ADR) in New Zealand: Adjudication

Alternative Dispute Resolution, or ADR, is a way to solve disagreements without going to court. In New Zealand, one popular type of ADR is called adjudication. This method is often used in construction and building disputes, but it can apply to other areas as well.

What is Adjudication?

Adjudication is a process where an independent person, known as an adjudicator, helps to resolve a dispute. The adjudicator listens to both sides of the argument and then makes a decision. This decision is usually quick and is meant to be fair for both parties.

How Does It Work?

Here’s a simple example: Imagine two builders, Alice and Bob, who disagree about the quality of work done on a project. Instead of going to court, they can choose adjudication. They would both present their case to an adjudicator, who would review the evidence and make a decision. This decision is binding, meaning both Alice and Bob must follow it.

Why Choose Adjudication?

There are several reasons why people in New Zealand might prefer adjudication:

• Speed: Adjudication is usually faster than going to court. Decisions can often be made within weeks.
• Cost: It can be less expensive than a court case, saving both time and money.
• Confidentiality: The process is private, so details of the dispute are not made public.
• Expertise: Adjudicators often have specific knowledge about the industry related to the dispute, which can lead to better decisions.

When is Adjudication Used?

Adjudication is commonly used in the construction industry, especially for disputes over contracts, payments, or project delays. However, it can also be applied in other areas where parties need a quick resolution.

Conclusion

In summary, Alternative Dispute Resolution through adjudication offers a practical way for people in New Zealand to resolve their disputes efficiently and fairly. It helps avoid the lengthy and costly process of going to court, making it a valuable option for many.