Part 3 Adjudication of disputes

Subpart 1—Preliminary

25 Right to refer disputes to adjudication

(1)

Any party to a construction contract—

(a)

has the right to refer a dispute to adjudication; and

(b)

may exercise that right even though the dispute is the subject of proceedings between the same parties in a court or tribunal.

(2)

An example of a dispute is a disagreement between the parties to a construction contract about—

(a)

whether an amount is payable under the contract (for example, a progress payment) or the reasons given for non-payment of that amount; or

(b)

whether there has been a breach of a term of the contract (including a term implied into the contract under the Building Act 2004 or any other enactment).

(3)

A dispute may not be referred to adjudication without the consent of the parties to the dispute if—

(a)

the parties to the relevant construction contract have agreed to refer disputes between them to arbitration; and

(b)

the arbitration is—

(i)

an international arbitration as defined in article 1(3) of Schedule 1 of the Arbitration Act 1996; or

(ii)

covered by the provisions of the Protocol on Arbitration Clauses (1923); or

(iii)

covered by the provisions of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States and is an arbitration to which the Arbitration (International Investment Disputes) Act 1979 applies.

(4)

Subsection (3) prevails over subsection (1).

Section 25(2): replaced, on 1 December 2015, by section 26 of the Construction Contracts Amendment Act 2015 (2015 No 92).