CIC publishes Second Edition Low Value Disputes Model Adjudication Procedure

Since the launch of the first CIC LVD MAP First Edition, published in May 2020 several key issues had been identified and a Working Group chaired by Martin Burns Head of ADR Research and Development, Royal Institution of Chartered Surveyors (RICS), and supported by Christian Charles, Partner, Fladgate LLP and Peter Vinden, Chief Executive, Gateley Vinden was tasked with tackling the issues identified and updating the procedure.

The headline changes of note are:

• Both parties consent not necessarily required where Scheme applies;
• Fixed fee structure changed to capped fees £2k to £5k depending on dispute value and a cap of £250 per hour rate;
• Overall dispute value increased from £50k to £100k;
• ANB can set their own appointment fee (previously prescribed at £250); and
• Timetable changed increasing the time available to the adjudicator to make the Decision by 1 week.

FIS CEO Iain McIlwee said: “Adjudication has revolutionised how construction disputes are resolved over the past 20 years, but it isn’t a panacea and can be complicated, daunting and seemingly beyond the reach of many.  At the heart of adjudication is the drive to resolve a dispute efficiently “without unnecessary costs” and the Low Value Disputes Model Adjudication Procedure has embraced this.  Since its introduction in 2020 it has provided a simplified and practical way to access professional dispute resolution support.  We applaud this work and the changes that have been made in this edition to improve the process.  We remain champions of the Conflict Avoidance Process, but at times we need a rapid and practical way to move beyond an impasse to ensure power balances in relationship are not abused, money flows, problems are resolved and work flows.  This low value procedure makes that a reality for more SMEs working in our sector and indeed those working with SMEs to structure more professional relationships and get fair and speedy resolution to problems that are at an impasse.”

CIC ADR Management Board, Chair, Matt Molloy, said: “The aim of the revised edition is to remove some the hurdles and address some of the problems experienced over the last 3 years by users and adjudicators. The removal of the requirement for both parties to consent, the change in fee structure and the increase in value of dispute from £50k to £100k should make the procedure more attractive and increase its use. In my view the changes will enable the parties to focus on the substantive dispute and for it to be managed in a cost effective and efficient manner. I would like to thank the working group (Martin Burns, Christian Charles and Peter Vinden) for all their work in coordinating feedback and implementing the changes. There is no doubt in my mind that the industry will benefit from their efforts.”

RICS Head of ADR Research and Development, Martin Burns, said: “Since its initial launch in 2020, the CIC procedure has been adopted by hundreds of SMEs to resolve their disputes. This second edition is more concise and accessible and will provide opportunities for many more parties, involved in lower value disputes, to have them resolved quickly and cost effectively.”

The Second Edition Low Value Disputes Model Adjudication Procedure can be downloaded here