The following Construction guidance note provides comprehensive and up to date legal information covering:
Produced in association with 4 Pump Court
The requirement of natural justice does not require an adjudicator to give reasons: Multiplex. Accordingly, it follows that the requirement to give reasons arises from the specific rules under which the adjudication is being conducted. In the context of the Scheme for Construction Contracts, para 22 requires that an adjudicator must give reasons if requested to do so.
The courts have set out guidance on what is required when reasons must be given, as well as what amounts to sufficient 'reasons'. The court in Carillion set out the following propositions:
if the reasons are requested, a brief statement of the reasons will suffice. The reasons should be sufficient to show that the adjudicator has dealt with the issues submitted to him and what his conclusions are on those issues
there is generally no need for an adjudicator specifically to refer to and address the arguments that were rejected in coming to a decision
if reasons are given and they prove to be erroneous, that does not generally enable the adjudicator’s decision to be challenged. It is only in extreme circumstances that a failure to give reasons could lead to the court refusing to enforce an award. The losing party would have to show that the reasons
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