The FIDIC Certified Adjudicator and the role of adjudication in the infrastructure industry
Adjudication is commonly used to ensure that conflicts are resolved in a fair and amicable manner. It also helps parties uphold their contractual obligations. Without adjudication, parties may be unable to reach a cordial agreement and over time, they may be forced to resolve their conflict in court.
Dispute resolution through adjudication is a process whereby parties can meet and settle disagreements or decide on how legal qualifications in their agreement can be managed when the parties cannot reach a conclusion on their own. According to the FIDIC contract terms, this process carries a 28-day timetable. This can be extended to 42 days or longer based on the agreement initially established by the parties. A neutral third party, notably an adjudicator, listens to both sides of a dispute, examines the evidence, then a decision is made based on the contract and the facts presented. According to a study by The Adjudication Society, 80% of claims achieve at least some level of success which is a testament to adjudication’s efficacy.
Why is adjudication such a valuable process? Here are some of the top three reasons:
- Speedy resolution: Adjudication allows parties to reach a decision in a timely manner, which in turn reduces delays, thus keeping projects on track.
- Affordability: It offers greater cost efficiency compared to protracted court cases or arbitration. The process is streamlined, resulting in reduced legal costs and administrative expenses associated with the more formal methods of dispute resolution.
- Adaptability: Adjudication procedures can be tailored to suit the distinct requirements of the parties involved in the process and the particularities of the dispute. This flexibility helps foster innovative solutions, which might not be as easily achieved using the conventional legal processes.
DAB (Dispute Adjudication Board) – as included in the 1999 editions and the DAAB (Dispute Avoidance and Adjudication Board) – as included in the 2017 editions – are included as crucial elements within FIDIC standard forms of contracts. They are designed to provide mechanisms for resolving disputes which may arise during a project. The DAB/DAAB are comprised of a small panel of impartial experts who can assist the parties in avoiding or resolving disagreements which would otherwise escalate further into more significant conflicts such as a court hearing.
However, because the decision made by the adjudicator is only temporarily binding, if either party is dissatisfied with the outcome, they have the right to appeal the decision through arbitration.
Thus, arbitration is a more significant step in the dispute resolution process. Arbitration is generally a more time-consuming process and the decision made by the arbitrator is final and legally binding (except in limited circumstances).
Whilst it is a longer process than adjudication, arbitration is generally quicker than regular court cases – although it could still take several months to a year to complete the process.
Recent studies have indicated that only a small number of claims advance past adjudication, which potentially highlights a decline in the arbitration as an option for resolving disputes. The cost remains high, so resolving disputes via DAB/DAAB is a more cost-effective method for all parties. Involvement in a dispute can also negatively impact on reputation. As a result, avoiding disputes could help protect a company’s professional standing and credibility. Disputes also negatively impact the relationship between the parties. If parties wish to preserve business relationships avoiding disputes can help which increase the likelihood of further future collaborations.
By steering clear of disputes, businesses retain a higher level of control in their business dealing and project management.
FIDIC remains dedicated to capacity-building by advocating for parties to include in their contractual agreements, impartial experts who can assist them, if and when a dispute arises.
Experts who are able to manage disputes based on FIDIC contracts must understand the FIDIC Standard Forms of Contracts and must have under their belt, at least a decade of experience working in the infrastructure industry to better appreciate the various aspects of engineering and construction projects and how they function in real terms, so that they can best support the needs of the parties and help them reach an amicable solution within a reasonable timeframe.
FIDIC established a credentialing body, FCL, to offer a qualification to experienced dispute resolution experts seeking to validate their skillsets. A FIDIC Certified Adjudicator is considered as an expert who possesses in-depth knowledge of FIDIC Standard Forms of Contracts and understands how DAABs function. Furthermore, all those who are certified must possess the necessary experience and ability to act in a fair and unbiased manner, thus upholding these standards are a vital aspect of FIDIC’s commitment to integrity.
The FIDIC Certified Adjudicator programme is offered twice yearly and consists of two phases; an online multi-choice examination to test knowledge and a two-day peer to peer assessment, including role-play scenarios. Candidates must successfully complete both phases to be certified. This comprehensive assessment is designed to validate the skillsets of experienced adjudicators and mediators.
All FCL certifications are internationally recognised and endorsed by FIDIC, the global leader of the infrastructure industry. The FIDIC Certified Adjudicator programme gives qualified dispute avoidance experts a competitive edge amongst their peers. Acquiring an international certification from FCL boosts your professional development, provides increased networking opportunities, validation of skills and prospects for increased earning potential.
Additionally, all certified adjudicators gain a spot on the coveted ‘President’s list’ which can be found here. The President’s list offers a prestigious database for adjudicators who have successfully completed the FIDIC Certified Adjudicator certification process and who are seeking to share their profile with an international audience. This exclusive list is used by those seeking dispute resolution experts, mediators and dispute avoidance professionals including the option to select based on languages spoken, region and services offered. Consequently, gaining a spot on the President’s list helps open doors to new opportunities and offers access to a wider network of professionals working in the industry.
Ready to take the next step in your professional career? The FIDIC Certified Adjudicator application window opens on 14 August – 22 September 2023. This will be the last opportunity to get certified this year. So, start 2024 as a FIDIC Certified Adjudicator by signing up here: Certified Adjudicator – FCL Fidic
