Adjudication as an alternative dispute resolution method in the South African construction industry

Abstract

Adjudication has recently been introduced to the South African construction industry as an alternative dispute resolution mechanism. This study investigates what the requirements are for the industry to realize the full potential of adjudication. To this end the study reviews the necessary contractual, institutional and legislative framework, discusses relevant skills and available training, and establishes what impact all these have on the current practice of adjudication. A literature review was conducted, covering the local and international practice of adjudication. A structured interview was conducted with adjudicators, and those who were out of geographic reach were sent a survey questionnaire. The results obtained were statistically analysed. Adjudication appears to have found acceptance in the South African construction industry, but it was found that the industry is not yet able to realize the full potential of adjudication, the main reason for this being a lack of knowledge.

Keywords

• adjudication
• alternative dispute resolution
• construction contracts
• payment
• legislation