Insights

Arbitration : Can a Concilitator’s Recommendation Under the Riai Contract be Challenged in the Courts?

The 2016 case of BAM Building Limited -v- UCD Property Development Company concerned a conciliator's recommendation made under the RIAI form of building contract, arising from construction of the Sutherland School of Law at University College Dublin.

The contract provided for payment of the amount recommended by the conciliator, or that a bond be furnished in lieu of payment. The conciliator recommended payment of €1.1m by the defendant contractor.

The plaintiff sought a declaration from the High Court that the amount be paid on account, notwithstanding the subsequent referral of the parties' dispute to arbitration. The question before the court was whether or not the interpretation of the clause relating to the payment of the amount recommended by the conciliator was itself subject to the arbitration clause in the contract.

The court found that the question of whether the payment was due was a matter for the arbitrator, and that the presence of an arbitration clause meant that the parties had agreed to refer all of their disputes to arbitration.

BAM Building Limited -v- UCD Property Development Company Ltd [2016] IEHC 582 (High Court, McGovern J, 20 October 2016)

For further information contact Peter Kearney on pkearney@reddycharlton.ie


Keywords: Publication, Deirdre Ní­ Fhloinn, Commercial Litigation, Construction

< Back to Insights