During the late 1990s, Lord Woolf published his reforms which are otherwise known as the Civil Justice Procedures. These reforms put the onus onto disputing Parties to make substantial efforts to resolve their difference and only revert to the Courts as a route of last resort.
As a result the number of alternative dispute resolution procedures has increased and their use has become more prevalent. Such procedures include:
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Arbitration.
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Adjudication
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Mediation
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Expert Determination.
Arbitration
Is a private dispute resolution process in which the parties agree to have the matter settled by an independent third party arbitrator and to be bound by the decision made.
The arbitrator can be chosen by agreement or appointed by a nominated body such as the Royal Institution of Chartered Surveyors (RICS).
The jurisdiction of the arbitrator is fixed by the parties in advance, with the arbitrator acting fairly and impartially, including giving each party the opportunity of putting their case forward.
Adjudication
Is a statutory backed procedure which was introduced in 1998 under the Housing Grants, Construction Regeneration Act.
It covers most construction operations carried out in the UK as well as the appointment of construction professionals.
It is regarded as a fast track process to nip disputes in the bud so that works can continue and the project completed.
The decision is immediately binding and remains so unless the matter is referred to an arbitrator or the Court and a different outcome is decided.
Mediation
Is a private dispute resolution process in which the parties usually agree to be bound by the outcome of the mediation process.
Whilst the Mediator is likely to be experienced in the matter of the dispute, he/she will not offer an opinion as to the merit or otherwise of the parties cases but will endeavour to facilitate mutual understanding of the parties respective positions.
Around 80% of all mediations result in the parties reaching agreement as to how to settle their differences.
Expert Determination
The parties instruct a third party expert to decide the dispute which normally relates to a technical or valuation issue.
This main advantages of this process are Expertise, Speed and Finality, as there is no appeal.