Having a clear, certain and well drafted model clause is essential to ensure effective and efficient dispute resolution should the need arise.
MODEL CLAUSE FOR ADJUDICATION UNDER THE NZDRC ADJUDICATION RULES
The following clause should be included in contracts where the parties wish to have any future disputes resolved by adjudication under the New Zealand Dispute Resolution Centre’s Adjudication Rules:
“Any dispute or difference arising out of or in connection with this contract, or the subject matter of this contract, including any question about its existence, validity or termination, shall be referred to adjudication in accordance with the Adjudication Rules of the New Zealand Dispute Resolution Centre.”
In our experience, in the vast majority of cases the parties comply with an adjudicator’s determination and the matter goes no further. However, because an adjudicator’s determination is binding in the interim, ie unless or until it is changed, altered or amended by agreement, an arbitral award (if there is an arbitration clause), or court judgment, we also recommend inserting the following clauses together with the adjudication model clause above.
“Any dispute or difference that has been the subject of an adjudication, may be referred to and finally resolved by arbitration in accordance with the Arbitration Rules of the New Zealand Dispute Resolution Centre.
No party may commence arbitration or any other legal proceedings other than commencing proceedings necessary to preserve its legal rights unless that party has first complied with the adjudicator’s determination.”
GOT AN EXISTING DISPUTE?
Parties to an existing dispute that have not incorporated the NZDRC Model Adjudication Clause into a prior agreement may still agree to refer that dispute to adjudication under the NZDRC Adjudication Rules by signing an agreement to adjudicate. Complete the form below, and our registry team will send you an agreement to use: