ABSTRACT

The purpose of adjudication is to ease the cash flow of the executing party. Adjudication provides a swift method of obtaining a neutral party decision as to whether monies claimed are payable or not. The purpose of the exercise would be defeated if the other party could postpone the application of the decision of the adjudicator by simply referring the dispute to arbitration or litigation as the case may be. Under this subsection the parties are obliged to implement the decision of the adjudicator pending the outcome of any other proceedings. In effect, this will usually mean a payment being made to the claimant. In practice the parties tend to implement the decision of the adjudicator and not seek to have the dispute dealt with in arbitration or in court.