An examination into the current status of adjudication practice on public sector construction contracts in South Africa

Abstract

PURPOSE The concept of adjudication is no longer new in the South African construction space. All the modern forms of contract in use incorporate adjudication as a standard form of dispute resolution. However, a careful observation indicates that sufficient attention has not been given to adopting the adjudication provisions by contracting parties on public sector projects. This paper discusses the existing adjudication provisions in the standard forms of contract, review current practices of contractual adjudication and thereafter evaluate the potential of adjudication as an alternative dispute resolution process in resolving disputes among public sector contracting parties. DESIGN/METHODOLOGY The paper analyses the current status of adjudication practice in South Africa by systematically reviewing selected articles and documents on both contractual and statutory adjudication with emphasis on the South African construction industry. The methodology involves the examination and analysis of selected documents and published literatures. FINDINGS The analysis of the selected documents reveals that there are adequate provisions for adjudication in the current forms of contract endorsed for usage in the South African construction industry. However, the public sector contracting parties rarely invoke adjudication provisions when disputes arise. This paper therefore provides a future direction by indicating the need to identify the constraints to effective adoption and invocation of adjudication provisions by public sector contracting parties. ORIGINAL/VALUE OF PAPER The study adds to the body of knowledge by creating an insight into the potential of adjudication in resolving disputes among public sector contracting parties in South Africa. The study also alerts the industry to give adequate consideration to factors that can promote more effective usage of adjudication provisions by public sector contracting parties.