RICS IS TO OFFER a new adjudication service which it believes will help free up SME cashflow.
The service, for low-value construction disputes where the amounts claimed are for £50,000 or less, is aimed at disputes which are relatively uncomplicated.
In the light of the impact of the coronavirus on the industry, there is a renewed call for an easy to use method. RICS has set up a high-quality panel of RICS adjudicators who have been trained to deliver the service.
RICS’ Global Director of Dispute Resolution Services, John Fletcher said, “RICS is very supportive of the CIC’s best practice guidelines and as a professional body who can provide adjudication services is happy to be able implement our service sooner to support small businesses in these extraordinarily challenging times.
“With cashflow a growing issue for the sector, this service offers a realistic opportunity for SMEs in the construction industry to have disputes resolved cheaply and effectively, where they might previously have found the costs and complexity of adjudication to be prohibitive.”
The LVD MAP complies with the Construction Act and includes an uncomplicated timetable and structure.
RICS say the procedure is relatively inexpensive, and both sides will know beforehand how much the adjudicator will charge and how much each will have to pay.
Industry Minister Nadhim Zahawi said, “As part of our ambition to make the UK the best place to start and grow a business, we will always support initiatives that help companies of all sizes to achieve their potential.
“This new, more transparent process will offer access to justice for small and medium sized companies in the construction industry – helping ensure small disputes are resolved quickly, cheaply and effectively. We welcome the work of the CIC and RICS in developing this initiative.”
|More information on RICS’ adjudication services is here|