ABSTRACT

This requirement follows the UK Act of 1996 and the general trend in such legislation internationally. As between the parties to the adjudication, costs are not recoverable. However, costs incurred by a party in an adjudication which would not have occurred but for the breach of contract or negligence of another party, may be recoverable in proceedings outside of the adjudication. In the recent decision of Akenhead J in Board of Trustees of National Museums and Galleries on Merseyside v AEW Architects & Designers Limited,1 the court found that the designers were liable for the costs incurred by the plaintiff in defending adjudication proceedings brought by the building contractor against it. The court was satisfied that such expense was foreseeable in the sense of not being too remote.