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MED-AD AGREEMENT FOR CONSTRUCTION DISPUTES

© Daniel Atkinson 2002 27 January 2002

 

DISCLAIMER:

Parties should seek legal advice before entering into the Med-Ad Agreement and/or satisfy themselves that the Med-Ad Agreement is appropriate for resolution of their differences.

 

THIS AGREEMENT is made on .....…...….day of.......……..........………year…………….
between (the First Party) ......................................................................................
of: ......................................................................................
and (the Second Party) ......................................................................................
of: ......................................................................................
(the "Parties")
and: ......................................................................................
of: ......................................................................................
(the "Med-Adjudicator")

WHEREAS

A. Disputes and differences under a contract dated ................... (the "Contract") have arisen between the Parties in connection to works known as:
...................................................................................................................................
(the "Works")
B. The differences and disputes which are referred to this Med-Adjudication are:
...................................................................................................................................
...................................................................................................................................
(the "Dispute")
C. The Parties may, at any time before the issue of a notice of intention to refer the Dispute or any part of the Dispute to adjudication, agree that additional differences and disputes shall be added to this Med-Adjudication.  If the agreement is recorded in writing signed by the Representatives and the Med-Adjudicator, and if the said written agreement specifies the additional differences and disputes, the meaning of Dispute in this Med-Adjudication shall be modified and amended to include the specified additional differences and disputes.
D. The Parties wish to resolve the Dispute and enter into this Med-Adjudication in good faith and in order to achieve settlement of all or part of the Dispute by written agreement and to resolve any remaining part of the Dispute not settled by written agreement, by the decision of the Med-Adjudicator acting as an adjudicator.
E. Either Party may give notice at any time of its intention to refer the Dispute, any part of the Dispute or any dispute arising under the Contract to adjudication whether as part of this Agreement or otherwise.

In order to promote communication between the Parties and to facilitate resolution of the Dispute

IT IS NOW AGREED as follows:

Representatives and Participants

1. Each Party is represented in this Med-Adjudication by:
The First Party:  ..................................................................................................................
The Second Party:  ..................................................................................................................
(Each the Party’s “Representative” and jointly the “Representatives” )
2. In addition to the Representatives, the following will be present at and/or participate in the Med-Adjudication on behalf of each of the Parties:
The First Party:  ..................................................................................................................
The Second Party:  ..................................................................................................................
(Each the Party’s “Participant” and jointly the “Participants” )
3. Each Party’s Representative acts for and on behalf and has the authority to settle the Dispute on behalf of the Party he/she represents.
4. Each Party’s Representative agrees to be bound by the provisions of this Agreement and does so on its own behalf, on behalf of the Party he/she represents and on behalf of that Party’s Participant(s).
5. A Party shall notify both the other Party and the Med-Adjudicator immediately on any change to the above.

Place of Mediation Meeting

6. The Mediation Meeting shall take place at:
.................................................................................................................................

The Conduct of the Mediation

7. Each Party shall within two days of the appointment of the Med-Adjudicator submit to the Med-Adjudicator and to the other Party a concise summary (the “Summary”) of its view of the Dispute and all relevant documents to which the Summary refers.
8. The Med-Adjudicator and the Parties shall agree the date and place for the Mediation Meeting. The Parties shall be responsible for the costs of the place of Mediation including but not limited to room charges, communication and other facilities and refreshments.
9. Each Party shall, in advance of the meeting, inform the Med-Adjudicator and the other Party in writing of the name of its representative for the Mediation, who shall have full authority to act on behalf of that Party and the names of any other persons who will attend the Mediation Meeting.
10. Before the date of the Mediation Meeting, the Mediator shall read each Summary.
11. At the place of the Mediation Meeting, the Mediator shall chair and determine the procedure of the Mediation.

Status of Information in the Mediation

12. The Parties understand and agree that the process of Mediation adopted in this Med-Adjudication is not confidential as between the Med-Adjudicator and the Parties.  Although this Mediation process is adopted to achieve a settlement of the Dispute by written agreement, the process insofar as and to the extent that it involves the Med-Adjudicator is not considered settlement negotiations for any purposes.
13. The Med-Adjudicator, the Parties, the Representatives and the Participants understand and agree that all the following will not be kept confidential from the Parties and may be referred to by the Med-Adjudicator if required to act as adjudicator in any dispute whether under this Agreement, relating to the Dispute or otherwise arising out of the Works 
  1. all communications and information (whether given orally, in writing or otherwise) disclosed to the Med-Adjudicator for, during, or as a result of this Mediation, and
  2. all discussions between the Med-Adjudicator and either individually or together the Parties, the Representatives and the Participants in the course of this Mediation, and
  3. all consultations by the Med-Adjudicator in relation to the Mediation, and
  4. all the Med-Adjudicator's oral or written communications with the Parties, Participants and Representatives in this Mediation in a continuing effort to resolve the Dispute.

(the "Mediation Information")

14. Any Mediation Information shall not be privileged and shall be admissible as evidence and is not prevented from being produced in any litigation, arbitration, adjudication or other proceedings whether relating to the Dispute or otherwise arising out of the Works, solely by reason of its introduction or use in this Mediation.
15. If one Party discloses information only to the Med-Adjudicator, the Med-Adjudicator shall give to the absent Party a complete and accurate account of what has taken place.  The Party disclosing information shall provide copies of any written information to the absent Party.

Investigation and Enquiries During Mediation

16. The Parties have appointed the Med-Adjudicator to act in the Mediation to discuss the respective positions of the Parties on each of the issues constituting the Dispute and to provide them with his written view on each issue (together the "Views").  The Med-Adjudicator shall state with the issue of the last View that he has given a View on all the issues in the Dispute and shall issue the Views within 10 days of the date of this Agreement.  The aim of the Parties in adopting this Mediation process is to allow the Parties thereafter to agree and settle between them as many of the issues as possible.  Other than the Views, the Med-Adjudicator shall not issue to the Parties, Representatives or the Participants either orally or in writing a report, assessment, evaluation, decision, recommendation, opinion or finding of any kind concerning the issues, this Mediation or the Dispute.
17. The Med-Adjudicator shall meet with the appointed representatives of the Parties and discuss the respective positions of the Parties on each issue.  The Med-Adjudicator shall then decide how to proceed on each issue including any of the following:
  1. request the Parties to provide evidence and/or argument in respect of any issue;
  2. indicate to the Parties that he considers that he is able to make a concluded view on an issue and invite the Parties to state whether there are particular matters which they wish him to consider before issuing the concluded view;
  3. indicate to the Parties that he considers he is able to make a provisional view on an issue, stating the matters which remain to be resolved and whether they involve contractual/legal issues and/or factual issues and invite the Parties to state whether there are particular matters which they wish him to consider before issuing the provisional view;
  4. issue the Views stating for each issue whether it is a Concluded View or a Provisional View and stating the facts and law he has based his view upon and in the case of a provisional view the matters which remain to be resolved and whether they involve contractual/legal issues and/or factual issues.
18. The Parties agree that the Views shall have no legal effect and are not binding on the Parties nor the Med-Adjudicator except and to the extent that they are incorporated in the Settlement Agreement or in the decision of the Med-Adjudicator as adjudicator.  The Parties understand and agree that any Concluded View issued by the Med-Adjudicator during this Mediation may be incorporated into the decision of the Med-Adjudicator as adjudicator and that when preparing his decision the Med-Adjudicator has the right to modify and/or elaborate any such Concluded View in the light of the totality of the evidence and the submissions of the Parties in the Adjudication.
19. Other than the Views, neither the Med-Adjudicator, the Parties, the Representatives nor the Participants may submit either orally or in writing a report, assessment, evaluation, decision, recommendation, opinion or finding of any kind of the Med-Adjudicator concerning this Mediation to any court, arbitrator, adjudicator or other legal tribunal whether relating to the Dispute or otherwise arising out of the Works.

The Settlement Agreement

20. Any settlement, of the whole or of part of the Dispute, reached in this Mediation will not be legally binding until it has been reduced to writing and signed by, or on behalf of, the Parties.
21. The Med-Adjudicator shall, if so requested by the Parties, assist them to prepare the settlement agreement, but the Parties shall have the agreement independently reviewed by its own legal advisors before executing the settlement agreement.
22. If the Med-Adjudicator signs the settlement agreement, he/she shall only sign as a witness and not as a party to the settlement agreement.

Termination of Mediation

23. This Mediation may be terminated at any time without any adverse reflection or comment by the Parties and/or the Med-Adjudicator in any subsequent Adjudication.
24. This Mediation will terminate when:
  1. a Party informs the Mediator that it withdraws from the Mediation; or
  2. a period of 10 calendar days after the date of this Agreement: or
  3. the Med-Adjudicator has issued a View for each of the issues in the Dispute and for this purpose the Parties agree that a statement by the Med-Adjudicator on issue of a View that he has done so is conclusive; or
  4. a written settlement agreement is executed which fully resolves the Dispute; or
  5. the Mediator decides at his/her sole discretion that continuing the Mediation is unlikely to achieve the objective of being cost effective: or
  6. the Mediator decides at his/her sole discretion that one Party is not acting in good faith; or
  7. after the date of this Agreement a Party issues a notice of intention to refer a dispute under the Contract to adjudication.

Commencement of Adjudication

25. The Parties understand and agree that the issue of the Summary by each Party is not a notice of intention to commence adjudication nor a submission in adjudication and that a separate notice is required to commence adjudication.
26. The Parties agree that the Med-Adjudicator shall be the person named in the Contract to act as Adjudicator for the Dispute or for any part of the Dispute and shall substitute any person previously named in the Contract. 
27. The Parties agree that the Dispute or any part of the Dispute may be resolved by Adjudication and if the Dispute comprises more than one dispute consent to it being decided in one adjudication.

Adjudication Procedure

28. The Party which requires the Dispute or part of the Dispute to be referred to adjudication shall serve the Notice of Intention to Refer on the other Party by pre-paid post, addressed to the other Party’s address in this Agreement.
29. The Adjudication Procedure which applies to any adjudication of the Dispute or part of the Dispute shall be as provided under the Contract or if the Contract does does not comply with the requirements of Section 108(1) to (4) of the Housing Grants Construction and Regeneration Act 1996, the adjudication provisions of the Scheme for Construction Contracts shall apply. 

Interpretation

30. This Agreement shall be interpreted and applied in the manner most conducive to the efficient conduct of the proceedings with the primary objective of achieving a settlement of the Dispute by written agreement between the Parties as quickly as possible.

Other Proceedings

31. The Med-Adjudicator shall not be called as a witness at any litigation, arbitration, adjudication or other proceedings whether relating to the Dispute or otherwise arising out of the Works.
32. The Med-Adjudicator shall not represent and/or advise any Party or any Representative or any Participant in any proceedings whether relating to the Dispute or otherwise arising out of the Works.
33. Unless agreed by the Parties, the Med-Adjudicator shall not be appointed arbitrator in any proceedings whether relating to the Dispute or otherwise arising out of the Works.
34. Any litigation, arbitration or adjudication in relation to the Dispute may be commenced or continued notwithstanding this Med-Adjudication unless the Parties agree otherwise.

Confidentiality

35. The Parties and the Med-Adjudicator shall at all times maintain the confidentiality of the Med-Adjudication subject to consent of the other Parties which will not be unreasonably withheld.

Med-Adjudicator’s Fees and Legal Expenses

36. Each Party shall be responsible for payment of an equal share of the fees and expenses of the Med-Adjudicator when acting in the Mediation, save that the Parties are jointly and severally liable for the whole of said fees and expenses when acting as Mediator. If any Party fails to make the payment due from him, the other Party may pay the sum to the Med-Adjudicator and recover the amount from the defaulting Party as a debt due. Payment of the said fees and expenses will be made in accordance with the attached Fee Schedule.
37. Each Party shall bear its own costs and expenses of its participation in this Mediation.
38. The responsibility for the Med-Adjudicator's fees and expenses in the Adjudication and the Parties costs and expenses in the Adjudication shall be as stated the provisions of the Adjudication procedure which apply.

Law and Jurisdiction

39. This Agreement shall be governed by, construed and take effect in accordance with, English law. The courts of England shall have exclusive jurisdiction to settle any claim, dispute or matter of difference which may arise out of or in connection with this Agreement.
40. The Med-Adjudicator does not act as as advocate for any Party. The Parties agree and accept that the Med-Adjudicator's statements, including the Views, are not legal advice to any Party.
41. The Med-Adjudicator shall not be liable to the Parties or any person claiming through them for any matter arising out of or in connection with this Mediation or the way in which it is or has been conducted, and the Parties shall not bring or allow to be brought on its behalf any such claims against the Med-Adjudicator.
Signed on behalf of
First Party
Name: ......................................................................................
Signature: ......................................................................................
Date: ......................................................................................
Second Party
Name: ......................................................................................
Signature: ......................................................................................
Date: ......................................................................................
Med-Adjudicator
Name: ......................................................................................
Signature: ......................................................................................
Date: ......................................................................................

 

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