Adjudication Survey

MDA ADJUDICATION SURVEY 2018

The MDA Adjudication Survey is now into its fourth year. This is the only survey of its type in South Africa and provides some anecdotal statistical insight regarding the use of adjudication in our local industry. In 2018, MDA handled 35 adjudications, a decrease from 2017 where we handled 45 adjudications. Despite this decrease, these numbers reaffirm that MDA remains at the forefront of adjudication in South Africa.

This year we included a new point in our questionnaire to ascertain how adjudicators were being appointed. The statistics showed most being appointed via agreement between parties, as this provides them with an element of control.

The hourly fee range for adjudicators still remains vast, starting at R1250 and reaching the top end at R4000. This correlates with the qualifications of the adjudicator, with legally qualified adjudicators at the top end. A statistic not captured in the survey is that where parties agree to the identity of the adjudicator, they tend to prefer a legally or dual qualified adjudicator.

Two areas of stark contrast from the 2017 results included that only 3 of the 35 adjudications went to hearing during the 2018 year and only 25% of the matters reached a settlement during the full adjudication process.

Several construction law practitioners criticize adjudication and advise their clients to bypass it and head directly into arbitration. By recording the number of decisions where a notice of dissatisfaction was issued, we are able to establish the efficacy (or otherwise) of adjudication in finally resolving disputes. The 2018 survey reflects that no notice of dissatisfaction was issued in 42% of the adjudications which means that these decisions were accepted by the parties as final and binding.

Click here to view the 2018 MDA Adjudication Survey.