In brief The construction industry faces challenges in enforcing adjudication decisions, limiting its effectiveness outside the UK. Adjudication bonds, emerging from the PFI market, offer a solution by guaranteeing payment of adjudicated sums. These bonds, typically 10-20% of contract value, ensure immediate payment upon noncompliance, reducing the need for lengthy legal proceedings. Successful implementation requires careful drafting and integration into existing contracts. Adjudication bonds incentivize compliance, enhance adjudication’s credibility, and improve project cash flow. This…
Category