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