Winner pays all costs, says ruling

In the case brought by Bridgeway Construction, the adjudicator made an order against Tolent of £38,500.

But, as part of the award, the adjudicator told Bridgeway to pay the defendant's costs in accordance with the terms of the contract, together with his own costs, which he set at around £2,800.

David Oram, Hill Dickinson solicitor for Bridgeway, said: "The adjudicator did not attempt to determine the defendant's costs. Subsequently Tolent made payment to the claimant of the awarded sum, less the sum of nearly £12,000 representing their legal costs and management charges."

In other words, the losing party in the adjudication not only had its costs paid by the winning party but was permitted to determine the extent of those costs.

Hill Dickinson had contended that the contract terms effectively inhibited claimants from commencing adjudication as allowed by the Act. It equally contended that the terms were in contravention of public policy.