Agreement To Adjudicate

Agreement To Adjudicate

The decision shall be taken by an adjudicator whose decision is binding on the parties until the dispute is finally settled by judicial, arbitral or agreement. Originally, the construction law did not mention how to manage costs. However, the amendments to the Construction Act, introduced by the Local Democracy, Economic Development and Construction Act 2009, which entered into force on 1 October 2011, provide that any contractual provision that attempts to apportion the cost of a decision between the parties is invalid unless it is taken after the appointment of the arbitrator. This applies both to agreements for the apportionment of the costs and expenses of the adjudicator and to agreements relating to the person who must bear the parties` own costs. The parties may jointly agree to appoint an adjudicator of their choice. As a general rule, an agreement on who to appoint as an adjudicator must be concluded over a period of five days, including the day of notification of the intention to refer the dispute for decision. The parties may choose an adjudicator from the list of current members of the contracting body designated by the Ministers. In the Netherlands, legal proceedings are becoming more frequent, especially for large infrastructure projects. The Netherlands Government has concluded a DBFM model contract under which a dispute settlement court is appointed ad hoc following a dispute.

The most commonly used dispute settlement mechanism provides that a dispute settlement body will be established only after a dispute has been created. The standard mechanism provides that a dispute settlement body is composed of three persons (two appointed separately by each party and one is appointed jointly to the presidency).


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