RICS is set to provide a low value construction adjudication service to give UK SMEs a simple and cost-effective procedure that will make solving disputes more accessible and quicker for lower value claims. This is something that is badly needed in these challenging times to free up SME cash flow.
This may be particularly interesting for construction companies operating in Scotland, given that the Scottish courts are experiencing unprecedented delays and disruption, as a result of the coronavirus (COVID-19) outbreak. In the light of the impact of the coronavirus (COVID-19) on the industry, there is a renewed call for an easy to use method.
The RICS service will operate in accordance with the ground-breaking Construction Industry Council CIC Low Value Disputes Model Adjudication Procedure (LVD MAP) procedure.
The service is aimed at disputes where the amounts claimed are for £50,000 or less, and the issues in dispute are relatively uncomplicated. RICS have set up a high-quality panel of RICS adjudicators who have been trained to deliver the service.
The objective is to develop a streamlined adjudication procedure that applies to disputes below £50,000 that do not involve multiple or complex issues. These Low Cost Adjudication Rules will bring the cost of adjudicating disputes below £50,000 down to around £6,000.
Details of the CIC LVD MAP are expected to be formally launched on 23 June 2020.
The Parties shall bear their own costs and expenses incurred in the adjudication. If the Adjudicator makes no direction on allocation of his or her fees, the Parties shall pay them in equal shares.
The Adjudicator’s fees exclusive of VAT will be fixed as set out below.
Claim value Adjudicator’s fee
Up to £10,000 £2,000
£10,001 to £25,000 £3,500
£25,001 to £50,000 £6,000
Over £50,000 Negotiable
Where the Adjudicator meets with the Parties, in addition to the fee above, the Adjudicator will be paid £1,000 plus reasonable travel expenses. Where the Adjudicator visits the site, in addition to the fee above, the Adjudicator will be paid £1,000 plus reasonable travel expenses.
Where the Parties have a dispute where the claim exceeds £50,000, they may nonetheless choose to follow the LVD MAP procedure. In such circumstance the prospective Adjudicator shall write to the Parties setting out the basis of their proposed fees and expenses.
For more information contact our Construction Litigation team:
https://www.lemac.co.uk/practice-areas/12-chairman-partners-and-consultants/28-richard-barrie
https://www.lemac.co.uk/practice-areas/8-associates-solicitors-and-legal-team/69-christopher-reid
https://www.lemac.co.uk/practice-areas/8-associates-solicitors-and-legal-team/77-lindsay-burns
Levy & McRae were delighted to support the Kris Boyd Charity Valentine Ball on Saturday 8th February at Ayr Racecourse.
Senior Partner, David McKie said “The charity has done wonderful work in the Ayrshire Community and throughout the UK in its short period so far. We see in our own work the impact of mental health issues on families, communities, the workplace and beyond. Kris and his family’s commitment to addressing these issues through education is inspirational and we are delighted to support the charity in those ventures.”
“I was honoured to accept Kris’ invitation to join the charity as a Trustee and I look forward to contributing to the charity in the future and see first hand the fruitful and beneficial work it carries out throughout many local communities.”
Andrew Park, Lynne Walker and Mandy O’Rourke attended the Valentine’s Ball on behalf of the firm.
We were proud to sponsor the 2019 Charles Kennedy memorial dinner and debate at Glasgow University Union on Friday 11th October.
A huge well done to all the team at GUU for hosting such a successful evening.
Levy and McRae’s Commercial Litigation Team are returning to the Supreme Court of the United Kingdom for the third time in recent years.
The case which holds complex issues of Scottish Insolvency Law will be heard by the five Justices, including the two Scottish Justices, in London on 2nd May 2019.
The case which involves interpretation of legislation concerning the adequacy of the consideration paid for industrial property is of importance to any company considering the acquisition of assets from a company at risk of insolvency.
Levy & McRae’s Commercial Litigation Team has dealt with the case over the last three years and have managed the case through a Civil Proof (Trial) and then through the Inner House of the Court of Session which is the Scottish Court of Appeal.
The Commercial Litigation Team previously dealt with McGraddie -v- McGraddie which was heard by the Supreme Court and Mitchell -v- Glasgow City Council which was heard by the House of Lords prior to the establishment of the Supreme Court.
We are delighted to announce that our Consultant Professor Leo Martin has received an MBE in the Queen’s Birthday Honours list in recognition of his services to Healthcare and Education. He serves as the chairman of St Margaret of Scotland Hospice.
As a firm, we are very proud of Leo’s achievements and dedication to such honourable causes and we congratulate him in this richly deserved award.
In the media coverage, Leo was quoted as follows and we attach the relevant media links:
Professor Martin, who has been on the board of the Clydebank-based Hospice for twenty years and chairman since 2005, said: “It has been a huge privilege to serve on the board of the hospice. This honour recognises the dedication and hard work of the staff who provide the highest standard of care for terminally ill patients and their families every day. We should also remember the fundraisers who work tirelessly every week to bring in the money that is vital to keep the doors of the Hospice open.”
Professor Martin, who was also the first chair of John Wheatley College in Glasgow, added: “I was delighted to serve as the first chairman of this College, which was named after an early stalwart of Red Clydeside and one of the most significant political figures of the twentieth century. During his life, John Wheatley did so much to improve the lives and life chances of people in the East End of Glasgow. Without his community-based principles and political drive, families like ours would not have enjoyed so many opportunities.”
