This adjudication scheme is for referrals under the Premier Guarantee New Homes warranty, for unresolved disputes between Policyholders and Developers. 

PREMIER GUARANTEE ADJUDICATION SCHEME
Explanatory Notes
These notes are to be read in conjunction with the application form for the appointment of an adjudicator under the Premier Guarantee New Homes Warranty

GENERAL

This adjudication scheme is for referrals under the Premier Guarantee New Homes warranty, for unresolved disputes between Policyholders and Developers

Adjudication is a procedure whereby a dispute between a Developer and a Policyholder concerning any part of the construction of a Housing Unit is resolved by the binding decision of an impartial third party called an adjudicator.  The decision of an adjudicator is final and binding unless a later decision is made by the court.

An application to the President of the RICS is for the appointment of an adjudicator in accordance with the provisions of the Premier Guarantee New Homes warranty.  An application is made in accordance with the terms and conditions of the Premier Guarantee New Homes warranty, which covers the parties named on the application form.

THE ADJUDICATOR

Either party may apply to the Royal Institution of Chartered Surveyors (RICS) once all other negotiation and conciliation processes have been exhausted.

The adjudicator will be a chartered surveyor who decides a dispute using specialist expertise and knowledge of the subject matter.  The adjudicator will also base his decision on the results of his own personal investigations, including an inspection of the works.  An adjudicator will consider evidence brought to his attention by the parties, but he is not bound by them and can make his own enquires before coming to a decision.  The adjudicator will only give his decision on payment of his fees.

APPOINTMENT OF AN ADJUDICATOR

Within 48 hours of receiving an application the RICS will confirm receipt in writing to the parties.  The RICS will appoint an adjudicator within 7 days of confirming receipt of the application.  Once an adjudicator is appointed RICS’s role is at an end.  All further communication must be made directly to the adjudicator.

THE ADJUDICATOR'S ROLE

Following an appointment an adjudicator will contact both parties directly.  The adjudicator will invite both parties to give their views on how the dispute should be decided.  This will usually be brief written statements.  The adjudicator may need to inspect the works and to put questions directly to the parties.

The objective of adjudication is to obtain a speedy resolution of a dispute. It is intended that a dispute will be resolved within 28 days from the day an application for the adjudicator is received by the RICS.  The RICS will appoint an adjudicator within 7 days.  The adjudicator will reach his decision within 21 days after being appointed (including weekends but excluding bank holidays).  In many cases the adjudicator may be able to make his decision sooner, if the issue in dispute is straightforward.

The adjudicator is not required to give reasons for his decision, unless the parties have specifically requested reasons from the outset.

THE ADJUDICATOR'S DECISION

The adjudicator will write to both parties informing them of his decision is ready and requesting payment of his fees.  The adjudicator’s decision will be binding on the parties.  Though of either party has the right to refer the issue in dispute to the courts.

COST

The fees of the adjudicator will depend on the complexity of the issues in dispute and the time spent dealing with the dispute.  The adjudicator will charge an hourly fee.  The fees of the adjudicator will not exceed £125 (inclusive of VAT) per hour, up to a maximum of 10 hours spent dealing with the dispute (regardless of how many hours he actually spends on the adjudication).

The adjudicator has the power to decide who pays his fees.  If one party fails to pay their portion of the adjudicator’s fee, the adjudicator cannot order the other party to pay them.  He may, however, bring an action against the party who has not paid his fees.

FURTHER ADIVCE
For further information, advice or an application form contact Dispute Resolution Services, RICS. Telephone 020 7334 3806, email drs@rics.org, website www.rics.org/drs.