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Adjudication in construction contracts: a guide to adjudication in continental Europe

Thursday, 15th January 2016

"Litigation of any kind incurs unwanted costs and delays, caused in part by parties appealing the courts’ decisions.  In the context of construction litigation there is also the risk of the contractor becoming insolvent as a result of the prolonged stagnation of cashflow. It is therefore often beneficial for the parties to agree upon adjudication as a speedy method of alternative dispute resolution (“ADR”). Other common forms of ADR include: arbitration, conciliation and mediation.  

Construction contracts in Europe are usually based on the Civil Code provisions for construction work, with additional General Terms and Conditions. These provide only rudimentary legal regulations for adjudication proceedings, which are in essence summary procedures, decided by a pre-determined adjudicator. This is in contrast to the law in England where adjudication is a compulsory form of dispute resolution for any construction contract.

The following article will give an overview of the various contractual arrangements and statutory provisions in Continental Europe that can be used to refer a dispute to adjudication, as well as the country specific considerations."

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Web-link: http://www.lexology.com/library/detail.aspx?g=1d484157-dca4-497e-a243-d2a0c776b5...
Source: Eversheds LLP
Language: English
Contact: Dr. Steffen Jung


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