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Adjudication Can Provide a Cash Flow Lifeline for Construction and Property Companies- 18/09/2009
With around 17 businesses going under every day, the construction and property sector should make more use of adjudication to settle contract disputes, according to a leading Midlands’ construction litigation lawyer.
Guy Birkett, Partner and Head of Litigation at West Midlands’ law firm FBC Manby Bowdler, says that adjudication can help unlock disputed cash in less than a month.
“With the construction and property industry now making up more than one in four corporate insolvencies, twice as many as two years ago, it is little wonder that we are seeing even more contract disputes than ever, as companies battle over every penny.
“But, a quick resolution to a dispute which results in the delivery of some much needed cash can often be the difference between survival and failure in these difficult times,” says Mr Birkett, who is based in FBC Manby Bowdler’s Wolverhampton office.
“Adjudication was brought in specifically to help cash flow within the construction industry. A binding and enforceable Adjudicator's award can typically be made within 28 days of the start of the adjudication process, representing vital lifelines to businesses which are properly owed money which is unfairly being withheld under a construction contract.”
In the past five months FBC Manby Bowdler's Construction Law Team has used the adjudication process to resolve final accounts, interim certificates and defects with a combined cash value of more than £3.5 million pounds.
Mr Birkett continues: “Because the adjudication process is started and concluded within a four week period it is important that the claim be dealt with by a dedicated team able to respond quickly and effectively. With a total of 18 specialist lawyers FBC Manby Bowdler boasts one of the largest litigation teams in the region."