CCA Adjudication Fees

CCA Adjudication Fees

The Building Disputes Tribunal (BDT) seeks to provide proportionate dispute resolution options for parties to building and construction disputes. In line with this principle, BDT has developed and offers a fixed fee adjudication process for low value monetary claims of limited complexity (the LVC Scheme).

If your claim is not eligible for the LCV Scheme, you will proceed under the General Claim Scheme, and the adjudication fees will be based on the time spent by the adjudicator. Under General Claims you will be asked to pay a security amount into BDT’s trust account.

Ultimately, the adjudication fee payable will depend on which track your claim proceeds along – the LVC Scheme or General Claims. Regardless of which track you are in, you will still receive the same high quality, fully administered, adjudication process.

Cost Overview

There is no application fee charged for the nomination of adjudicators. However, if the claim settles or is withdrawn for any other reason before a determination is made, there is a non-refundable administration fee of $750 plus GST.

Low-Value Claim Scheme (<$250,000)

Giving parties certainty with fixed fees.

General Claims

Claims outside the low value claim scheme proceed as general claims. The fees are based on the time spent by the adjudicator.

Low-Value Claim Scheme (<$250,000)

You may be eligible to apply for adjudication under the BDT’s fixed fee Low Value Claim Scheme where:

  1. your claim is for a sum of money less than $250,000 including GST, but excluding interest and costs;
  2. your dispute involves three or fewer issues (for example, three items of defective works or three variations); and
  3. the volume of materials required to present your case falls within the limits set out below.

The fees for the low-value claim (LVC) scheme are set out in the table below. Please read this section including the conditions of the Scheme. The fee must be paid to us before the adjudication starts.

Auckland City Sunset
LVC Code
Claim Amount (including GST)
Fee (plus GST)
Maximum number of pages of submissions and evidence *
LVC5
< $5,000
$1,500
15
LVC10
$5,000 < $10,000
$2,500
15
LVC20
$10,000 < $20,000
$3,750
20
LVC30
$20,000 < $30,000
$5,000
30
LVC40
$30,000 < $40,000
$6,250
40
LVC50
$40,000 < $50,000
$7,500
50
LVC60
$50,000 < $60,000
$8,750
60
LVC80
$60,000 < $80,000
$10,000
80
LVC100
$80,000 < $100,000
$12,000
100
LVC150
$100,000 < $150,000
$15,000
150
LVC200
$150,000 < $200,000
$17,250
200
LVC250
$200,000 < $250,000
$19,750
250
Conference of the parties and/or inspection of construction work or any other thing to which the dispute relates, at the request of any party or at the Adjudicator’s discretion (payable before release of the determination)
$750 Plus mileage/travel expenses
Cancellation fee
$750

*Conditions

The number of items at issue is strictly limited to three or fewer, ie a total number of issues in the claim of up to three variations, or three items of allegedly defective work, or extension of time for one event and two variations etc.

Documents that the claimant may file in support of the claim are limited to:

  • the Notice of Adjudication, Adjudication Claim, and Contract Documents, and
  • the number pages of submissions and evidence specified in the table above about the claim and the matters at issue. (Pages are A4 with font size not less than Arial 10.5 or equivalent).

No conference of the parties or inspection of construction work is included in the fixed fee. If these are required, an extra fee must be paid in advance.

If the adjudication is cancelled for any reason, including if the dispute is settled or withdrawn, the BDT may charge a cancellation fee in the amount specified in the table above (Cancellation Fee) plus the adjudicator’s fees and expenses to the date of cancellation.

Payment of Security

Please note: for claims equal to or above $250,000 and/or for those claims that do not fit the criteria for LVCs please see information on fees for general claims below.

If a claim or response presents undue complexity, or the submissions and evidence submitted in support of the claim exceed the permitted number of documents, or where two or more adjudication claims are consolidated, BDT may, at its sole discretion, advise the parties that it declines to provide the adjudication on a fixed fee basis under the LVC scheme.

The adjudication will revert to a General Claim Adjudication. The cost of the adjudication will be determined by the time the adjudicator is required to expend on the duties of the matter, together with any expenses incurred by the adjudicator in the execution of those duties.

The Act contemplates that the parties will bear their own costs and expenses and meet the adjudicator’s fees in equal proportions unless the grounds in sections 56(1) and 57(4) for an exception are made out.

Usually, the claimant will pay the security amount to secure the adjudicator’s appointment immediately after service of the notice of adjudication when applying for the adjudicator’s appointment. The claimant will, in its notice of adjudication subsequent adjudication claim, seek a determination from the adjudicator that the respondent (or another party to the adjudication), is liable to meet the adjudicator’s fees and expenses and to reimburse the claimant for the security paid in such proportions as the adjudicator determines.

When BDT serves the adjudicator’s notice of acceptance on the parties, it will invite the respondent to contribute an equal share of the amount paid as security by the claimant.

If the respondent pays that amount, BDT will refund the claimant that amount leaving the adjudicator to determine the final allocation and award of costs between the parties.

 

General Claims (≥ $250,000)

The cost of determining General Claims is based on the time engaged on the duties of the matter by the adjudicator. This depends on many factors including: the number and complexity of the issues; the volume of documentation and evidence and the manner in which it is presented; and the extent of involvement of legal or other expert advisers.

General Claims are:

  • Claims involving amounts in dispute equal to or greater than $250,000 including GST, but excluding interest and costs
  • Claims for declaratory relief and
  • Claims under $250,000 that do not meet the criteria for low value claims.

Please note: for General Claims, any security amount is a nominal and arbitrary amount only and is not an estimate of the cost of the adjudication.

A notice of acceptance will not be served on the parties until the claimant, or the parties jointly, have paid (in clear funds) into the trust account of BDT a deposit as security for the adjudicator’s fees and expenses in accordance with the following table:

Value of Claim (incl GST)
Security Required (plus GST)
< $25,000
$6,000
$25,000 < $50,000
$8,000
$50,000 < $100,000
$10,000
$100,000 < $500,000
$15,000
$500,000 < $1,000,000
$17,500
≥ $1,000,000
$20,000
Rights and obligations only (declaratory relief)
$10,000

The cost of the adjudication shall be calculated according to the time engaged on the duties of the adjudication by the adjudicator, together with the expenses (including the BDT registry service fee) incurred by the adjudicator in the execution of those duties.

If the adjudicator’s fees and expenses are less than the amount held by BDT as security, BDT will provide the determination to the parties as soon as practicable after the adjudicator has made the determination. BDT will disburse the balance of the security held to the parties as determined by the adjudicator.

If the adjudicator’s fees and expenses are greater than the amount held by BDT as security, BDT will advise the parties of the adjudicator’s actual fees and expenses. The parties must pay the balance to uplift the determination. When the balance is paid in full, a copy of the determination will be provided to each party.

If the adjudication is cancelled for any reason, including if the dispute is settled or withdrawn, the BDT may charge a cancellation fee of $750 plus GST (Cancellation Fee) plus the adjudicator’s fees and expenses to the date of cancellation.

Payment of Security

Please note: claims below $250,000 that meet other criteria may be eligible for fixed fees under the LVC scheme above.

The Act contemplates that the parties will bear their own costs and expenses and meet the adjudicator’s fees in equal proportions unless the grounds in sections 56(1) and 57(4) for an exception are made out.

Usually, the claimant will pay the security amount to secure the adjudicator’s appointment immediately after service of the notice of adjudication when applying for the adjudicator’s appointment. The claimant will, in its notice of adjudication subsequent adjudication claim, seek a determination from the adjudicator that the respondent (or another party to the adjudication), is liable to meet the adjudicator’s fees and expenses and to reimburse the claimant for the security paid in such proportions as the adjudicator determines.

When BDT serves the adjudicator’s notice of acceptance on the parties, it will invite the respondent to contribute an equal share of the amount paid as security by the claimant.

If the respondent pays that amount, BDT will refund the claimant that amount, leaving the adjudicator to determine the final allocation and award of costs between the parties.