CIC publishes second edition Low Value Disputes Model Adjudication Procedure

The Construction Industry Council (CIC) has published a new second edition Low Value Disputes Model Adjudication Procedure (CIC LVD MAP) which is now available to download for free.

Since the launch of the first CIC LVD MAP first edition, published in May 2020, several key issues had been identified and a Working Group chaired by Martin Burns, Head of ADR Research and Development, Royal Institution of Chartered Surveyors (RICS), and supported by Christian Charles, Partner, Fladgate LLP and Peter Vinden, Chief Executive, Gateley Vinden, was tasked with tackling the issues identified and updating the procedure.

The headline changes of note are:

• Both parties consent not necessarily required where Scheme applies;
• Fixed fee structure changed to capped fees £2k to £5k depending on dispute value and a cap of £250 per hour rate;
• Overall dispute value increased from £50k to £100k;
• ANB can set their own appointment fee (previously prescribed at £250); and
• Timetable changed increasing the time available to adjudicator to make the Decision by 1 week.

Harry Pangli FCIAT, CIAT's representative on the CIC ADR Management Board, said: "The second edition of CIC LVD MAP provides a mechanism for SME's to have greater cost certainty in adjudications for the resolution of disputes up to a value of £100,000."

CIC ADR Management Board, Chair, Matt Molloy, said: "The aim of the revised edition is to remove some of the hurdles and address some of the problems experienced over the last 3 years by users and adjudicators. The removal of the requirement for both parties to consent, the change in fee structure and the increase in value of dispute from £50k to £100k should make the procedure more attractive and increase its use. 

"In my view the changes will enable the parties to focus on the substantive dispute and for it to be managed in a cost effective and efficient manner. I would like to thank the Working Group for all their work in coordinating feedback and implementing the changes. There is no doubt in my mind that the industry will benefit from their efforts." 

RICS Head of ADR Research and Development, Martin Burns, said: "Since it's initial launch in 2020, the CIC procedure has been adopted by hundreds of SMEs to resolve their disputes. This second edition is more concise and accessible and will provide opportunities for many more parties, involved in lower value disputes, to have them resolved quickly and cost effectively."

The second edition Low Value Disputes Model Adjudication Procedure can be download here.