Taking the right legal steps to secure your cashflow and resolve disputes

The money chase

Is there a problem with money?

The term 'Money Chase' describes the complex financial, legal, practical and personal scenarios that occur in building and construction industry disputes.

There are four different processes through which the Money Chase may proceed.

1 Rapid adjudication - This is a statutory process, available in New Zealand under the Construction Contracts Act 2002, where an adjudicator is appointed to decide or determine an interim payment. Interim payments maintain cashflow, which is the lifeblood of any business in the building and construction industry.

2 Litigation - This process involves New Zealand courts, depending on the amount of money involved.

3 Arbitration - This is a statutory process which the parties to a construction contract may agree to when entering into the contract. The arbitration process frequently includes mediation. Arbitration and mediation fall into the area of Alternative Dispute Resolution ("ADR"). Arbitration is generally final – there are very limited grounds of appeal.

Arbitrators and mediators in building and construction disputes often have a building and construction background. Mediation in the building and construction industry is specialised and often provides an agreed settlement to disputes.

4 Expert determination - Parties to a building and construction contract can agree to engage an expert to determine some disputes.

Outcomes - Having proceeded through any of these four processes, then immediate payment is the best outcome. If this is not achievable, other possible outcomes include:

  • Enforcement proceedings
  • Insolvency proceedings
  • Review or appeal proceedings
  • Restitution proceedings (including 'claw back' claims)

Stapleton Solicitors can act for you at all points of the Money Chase.

Trades

Understanding trades in the building and construction industry

We make it our business to understand individual trades, trade standards, workmanship, rates and prices.

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CIArb

Chartered Institute of Arbitrators (UK and Australia)

We have been associated with the Chartered Institute of Arbitrators (“CIArb”) since October 2011. The CIArb is located at 12 Bloomsbury Square, London.

CIArb

Chartered Institute of Arbitrators (UK and Australia)

We have been associated with the Chartered Institute of Arbitrators (“CIArb”) since October 2011. The CIArb is located at 12 Bloomsbury Square, London.