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Building bridges

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

Quinn Emanuel Urquhart & Sullivan—Andrew Savage

Quinn Emanuel Urquhart & Sullivan—Andrew Savage

Firm expands London disputes practice with senior partner hire

Druces—Lisa Cardy

Druces—Lisa Cardy

Senior associate promotion strengthens real estate offering

Charles Russell Speechlys—Robert Lundie Smith

Charles Russell Speechlys—Robert Lundie Smith

Leading patent litigator joins intellectual property team

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Writing in NLJ this week, Sophie Ashcroft and Miranda Joseph of Stevens & Bolton dissect the Privy Council’s landmark ruling in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2), which abolishes the long-standing 'shareholder rule'
In NLJ this week, Sailesh Mehta and Theo Burges of Red Lion Chambers examine the government’s first-ever 'Afghan leak' super-injunction—used to block reporting of data exposing Afghans who aided UK forces and over 100 British officials. Unlike celebrity privacy cases, this injunction centred on national security. Its use, the authors argue, signals the rise of a vast new body of national security law spanning civil, criminal, and media domains
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