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13 November 2015 / Martin Burns
Issue: 7676 / Categories: Features , Profession
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Building bridges

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The use of arbitration to resolve construction & engineering disputes is back in fashion, says Martin Burns

The low point for the UK construction and engineering arbitration sector occurred on 1 May 1998. It was the day the Housing Grants, Construction and Regeneration Act 1996 came into force, and adjudication started on its inexorable rise to become the pre-eminent method to determining contract disputes.

The decline of arbitration & rise of adjudication

In the years that followed, the number of arbitrations fell off a cliff while adjudication flourished. In 1995, the Royal Institution of Chartered Surveyors (RICS) appointed around 400 construction arbitrators; in 1998, only about 40 arbitrators were appointed, compared to 23 adjudicators. Last year, 10 arbitrators were appointed by RICS compared to nearly 900 adjudicators.

The decline in the popularity of arbitration actually began long before adjudication came on the scene. Even in the 1980s the process of arbitrating disputes had become inordinately slow and immensely expensive. Parties, particularly those that were involved in low-value disputes about relatively unsophisticated issues, had become disenfranchised from

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MOVERS & SHAKERS

Constantine Law—Anita Vadgama

Constantine Law—Anita Vadgama

New senior partner hire at consultant-led employment / regulatory law firm

Ward Hadaway—Emma Swann & Jill Donabie

Ward Hadaway—Emma Swann & Jill Donabie

Firm adds two partners to growing education practice

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

mfg Solicitors—Lauren Collins, Emily Stancer & Sara Southall

Trio of newly qualified solicitors strengthens Worcester office law firm

NEWS
The treasury has sought to reassure the legal profession over concerns about cost, bureaucracy and independence when the Financial Conduct Authority (FCA) takes over regulation of anti-money laundering compliance
One out of two barristers has come under pressure from clients to act unethically, according to the results of this year’s Barristers’ Working Lives survey
The Court of Appeal has held the Competition Appeal Tribunal (CAT) was wrong to set aside a Competition and Markets Authority (CMA) decision on unfair pricing of phenytoin, an epilepsy drug
A flagship employment law reform is due to come into effect on 1 July, extending unfair dismissal rights to employees after six months in their job instead of two years
The European Council has postponed the EU-UK summit, where discussions on a youth mobility scheme and other issues had been due to take place, due to Prime Minister Keir Starmer’s resignation
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