Operational problems and solutions
of statutory complex adjudication:
stakeholders’ perspectives
Samer Skaik
School of Architecture and Built Environment, Deakin University, Geelong, Australia
Abstract
Purpose – Statutory adjudication was introduced into the security of payment (SOP) legislation as a
fast-track payment dispute resolution process with an express object to facilitate cash flow within the
construction contractual chain. After more than a decade of the operation of the regime in Australia and
Singapore, it becomes apparent that there are many operational problems that jeopardise the intended
object of the legislation, particularly in adjudicating complex payment disputes. The aim of this paper is
to explore views of the industry stakeholders regarding some operational problems of statutory
adjudication of as well as possible solutions.
Design/methodology/approach – “Expert interviews” method is adopted to collect the empirical data,
involving interviews with 23 practitioners from Australia and Singapore.
Findings – The study identified many operational problems jeopardising the attainment of the object of the
SOP legislation such as bias of authorised nominating authorities, short adjudication timeframes, inadequate
regulations of adjudicators, jurisdictional challenges, involvement of courts and lawyers and complex
drafting of the legislation. The study also analysed the views of industry experts with regard to the
opportunities for improvement in the operation of the SOP legislation such as following the Queensland model
as amended, and introducing a legislative review mechanism and establishing a peer review process. It also
suggested specific amendments to make the legislation a more user-friendly.
Practical implications – The implication of this study is a better understanding of the most critical
problems inherent in statutory adjudication that need serious consideration by the legislatures and policymakers.
In addition, the study also provides some practical measures as suggested by the industry practitioners for each
identified problem which may stand as a reliable reference for potential reform in the SOP laws.
Originality/value – There is inadequate empirical research conducted to investigate problems in the
operation of statutory adjudication. The study provides original empirical findings which become much
necessary nowadays in light of the dynamic moves towards law reform in SOP laws, particularly in Australia.
The study provides some practical measures as suggested by the industry practitioners for each identified
problem which may stand as a reliable reference for potential reform in the SOP laws.
Keywords ADR, Adjudicators, Judicial review, Law reform, Security of payment,
Statutory adjudication
Paper type Research paper
1. Introduction
Statutory adjudication was introduced into the security of payment (SOP) legislation as a
fast-track payment dispute resolution process with an express object to facilitate cash flow
within the construction contractual chain. After more than a decade of the operation of the
regime, it becomes apparent that there are many operational problems that jeopardise the
intended object of the legislation, particularly in adjudicating complex payment disputes.
The “one-size-fits-all” adjudication scheme has resulted in a mounting swell of complaints
and dissatisfaction with the adjudication outcome of larger and/or more complex cases,
particularly in Australia (Australian Legislative Reform Subcommittee, 2014; Moss, 2015;
IJLBE
9,2
162
Received 4 March 2017
Accepted 12 May 2017
International Journal of Law in the
Built Environment
Vol. 9 No. 2, 2017
pp. 162-175
© Emerald Publishing Limited
1756-1450
DOI 10.1108/IJLBE-03-2017-0009
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