There are 3 types of fees incurable in a CIPAA 2012 proceeding namely:-
- The Adjudicator’s Fee
- AIAC’s Administrative Fee
- Representative / Legal Fee (Optional)
Adjudicator’s Fee
The Adjudicator’s Fee is based on the Standard Fee prescribed under Regulation 6 of Construction Industry Payment & Adjudication Regulations 2014 unless otherwise mutually agreed by the parties and the Adjudicator.
As the AIAC opines that the Standard Fee is too low, the AIAC has taken the initiatives to provide a Recommended Scale Fee. However, please note that the Adjudicator’s Recommended Fee is only applicable if the parties expressly agree to the same.
AIAC’s Administrative Fee
The AIAC’s Administrative Fee payable has been fixed at 20% of the Adjudicator’s Fee.
CIPAA 2012 Adjudicator's Standard Fee Calculator
CIPAA 2012 Adjudicator's Recommended Fee Calculator
Frequently Asked Questions (FAQs) - CIPAA 2012 Adjudicator's Fee
The Standard Fee is the standard scale fee applicable unless otherwise agreed by the parties.
The Recommended Fee is the scale fee prescribed by AIAC as the AIAC opines that the Standard Fee is too low and will only apply if the parties have expressly agreed on the same.
As a matter of practice, the Adjudicator will normally invite the parties to agree on Recommended Fee. If the parties fail to agree, then the Standard Fee will apply.
Pursuant to Section 19(4) of CIPAA, the parties are to contribute the fees in equal share
As a matter of practice, the Adjudicator will usually invite both parties to deposit 50% of the Adjudicator’s Fee and Administrative Fee in equal shares to the AIAC.
If the Respondent fails to make payment, the Adjudicator will proceed to invite the Claimant to deposit the remaining 50% of the Adjudicator’s Fee and Administrative Fee to AIAC pursuant to Rule 9(4) AIAC Adjudication Rules & Procedure.
Pursuant to Regulation 8 of Construction Industry Payment & Adjudication Regulation 2014, if Adjudicator’s Fee is not fully paid, the Adjudicator is entitled to withhold the Adjudication Decision until and unless the full payment is deposited with the Director of AIAC.
Pursuant to Section 18 of CIPAA 2012, the Adjudicator shall order ‘costs follow event’.
In simple words, the losing party will be ordered to pay costs to the wining party.
Typically, the costs awarded will encompass the Adjudicator’s Fee, AIAC’s Administrative Fee and the Representative fee / Legal fee.