Arbitration and Litigation

Arbitration is usually a strict and formal process similar to litigation in which the parties may be legally represented, and select and pay for the arbitrator. Arbitrators must comply with the Arbitration Act; their imposed decision is known as an award, and it is final and binding.

The final and most expensive alternative is litigation. That usually involves suing for breach of contract, non-payment, non-performance, faulty materials, or non-compliance. Judgment is publicly imposed and usually made by comparison with “state of the art” materials and practices available at the time the contract was signed.

Both arbitration and litigation can be prolonged and the parties’ cost may exceed the amount in dispute.

When roofing contractors sublet the contract, they assume the same responsibility as though they carried out the work.

To avoid disputes, roofing suppliers and contractors must give adequate instruction, training, and supervision. They should also keep their staff informed of industry developments and with the contents of the New Zealand Metal Roof and Wall Cladding Code of Practice.