Construction Contracts Act 2002

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Costs of adjudication proceedings

56 Costs of adjudication proceedings


An adjudicator may determine that costs and expenses must be met by any of the parties to the adjudication (whether those parties are or are not, on the whole, successful in the adjudication) if the adjudicator considers that the party has caused those costs and expenses to be incurred unnecessarily by—


bad faith on the part of that party; or


allegations or objections by that party that are without substantial merit.


If the adjudicator does not make a determination under subsection (1), the parties to the adjudication must meet their own costs and expenses.


An agreement about how the costs and expenses in adjudication proceedings are to be apportioned (including an agreement that a party is to indemnify another party in relation to those costs and expenses) is not binding on the parties to the adjudication if that agreement was made before the dispute arose.