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MDA Adjudication Survey 2016

The MDA Adjudication Survey aims to provide some (albeit limited) statistical information regarding the state of adjudication in South Africa.

The survey consists of information collected by MDA in respect of adjudications where MDA were retained to represent one of the disputing parties. The information collected relates to adjudications where a decision was issued between 1 January 2016 and 31 December 2016.

MDA Handled 27 adjudications during this period. The survey does not attempt to provide a representation of statistics of all adjudications in Southern Africa but simply provides statistics taken from these 27 adjudications and provides some interesting insight.

Cover 2016 (2)

 

 

 

 

 

 

 

 

Click here to view full 2016 report.

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Click here to view full 2015 report.

Since releasing our inaugural MDA Adjudication Survey in we have received extensive feedback from our clients and other interested parties. It appears that there are two areas of interest, namely (a) the high number of disputes under the NEC3 form of contract and (b) the relatively low value of disputes taken to adjudication. The reasons for these trends are that:

  • With regards to the NEC3, the definition of what constitutes a “dispute” is set lower than what would typically constitute a dispute under other construction contracts. As a result, a number of parties refer an “action or inaction” on the part of the other party to the adjudicator. This is reflected in the fact that 5 disputes in the survey had no monetary value attached to them.
  • With regards to the relatively low value of the disputes, this indicates the cost-effectiveness of referring disputes to adjudication. Parties are now referring disputes that would not have been referred to arbitration a few years ago.