Fees & expenses - Expert Determination

The conditions and the fees and expenses for NZDRC's Expert Determination services may alter from time to time, however the conditions and the fees in relation to any particular services shall be those that appear on the NZDRC's website at the time the application for Expert Determination is made.

 

Application / Nomination Fee

 

NZDRC does not charge an application or nomination fee.

 

Expert Determination Fees

 

NZDRC provides a fully administered, Expert Determination service for disputes of all values.

 

A Notice of Acceptance of Appointment as Expert will not be served on the parties to the Expert Determination by NZDRC until the parties have paid (in clear funds) into the trust account of the NZDRC a deposit as security for the Expert’s fees and expenses in accordance with the following schedule:

 

Code

Amount in Dispute

Security Payment Required

EXD1 ≤ $ 24,999.99 $6,000.00
EXD2 $25,000.00 ≤ $49,999.99 $8,000.00
EXD3 $50,000.00 ≤ $99,999.99 $10,000.00
EXD4 $100,000.00 ≤ $499,999.99 $15,000.00
EXD5 $500,000.00 ≤ $999,999.99 $17,500.00
EXD6 ≥ $1,000,000.00 $20,000.00

 

Please note that any amount paid as security for the Expert’s fees and expenses is a nominal amount only and is not, and shall not be considered an estimate of the cost of the Expert Determination which shall be calculated according to the time engaged on the duties of the Expert Determination by the Expert together with any expenses incurred by the Expert in the execution of those duties.

 

In the event that the Expert’s fees and expenses prove to be less than the amount held by the NZDRC as security, NZDRC will provide the Expert’s Determination to the parties to the Expert Determination as soon as practicable after the Expert has made his or her Determination. The NZDRC will disburse the balance of the monies held as security to the parties in the proportions in which the security was originally paid by the parties unless the parties agree otherwise and instruct NZDRC accordingly in writing within two (2) working days of receipt of the Determination.

 

In the event that the Expert’s fees and expenses prove to be greater than the amount held as security, the parties will be advised of the Expert’s actual fees and expenses by NZDRC and the parties will be requested to pay the balance in order to uplift the Determination. When the balance is paid in full, a copy of the Determination will be provided to each of the parties to the Expert Determination by NZDRC.

 

If an Expert becomes unable to perform the functions of that office, the Expert shall not be entitled to be paid any fees or expenses in connection with the Expert Determination and any amount paid as security for the Expert’s fees and expenses will be applied by NZDRC to meeting the fees and expenses of the substitute Expert.

 

When is Payment Required?

 

Payment of security for the Expert’s fees and expenses is required to be made at the time the signed Agreement for Expert Determination is filed with NZDRC. No administrative or procedural steps will be taken by NZDRC until payment of the required security is made in full and the funds are clear.

 

In the event that the Expert’s fees and expenses are greater than the amount held as security, the parties must pay the balance of the Expert’s fees and expenses within two (2) working days of receipt of notification by NZDRC of such additional fees and expenses.

 

Liability for Payment

 

The parties are free to make any arrangements as between them for payment of the Expert Determination fees and expenses. However, it is most common, and indeed desirable, that the parties contribute equally to the cost of the Expert Determination process thus confirming that the Expert is employed for the benefit of all parties and ensuring the 'neutral' status of the Expert.

 

Notwithstanding any agreement as between the parties, under the Expert Determination Agreement the parties are jointly and severally liable for the fees and expenses of the Expert Determination together with any additional costs howsoever incurred by NZDRC in recovering any overdue monies on a full indemnity basis.

 

If the dispute between the parties is settled, or the request for Expert Determination is withdrawn or terminated by the parties for any reason whatsoever before the Determination is made, the Expert is entitled to be paid all fees and expenses incurred by the Expert in the execution of the duties of the Expert Determination up to and including, as the case may be, the date on which the request for Expert Determination was withdrawn or terminated, or the date on which the Expert was notified that the dispute had been resolved.

 

Methods of Payment

 

Payment of all NZDRC fees and Expert Determination expenses may be made by cheque, direct credit, or by credit card (Visa and MasterCard only). Please note that if paying by credit card there is a merchant transaction fee of 2.75% payable in addition to any invoiced amount.

 

Cancellation Fees

 

In any case where a party notifies the Expert in writing that a scheduled conference, inspection, or any other attendance is to be vacated, whether or not the dispute between the parties has been settled, or the conference, inspection, or other attendance is adjourned by agreement, or the application for Expert Determination is withdrawn or terminated by the parties for any reason whatsoever, and the notice is received by the Expert during ordinary business hours between ten (10) and six (6) working days from and including the date of the scheduled event, the Building Disputes Tribunal will charge a cancellation fee in the amount of 50% of the Expert’s daily Fee or part thereof as appropriate.

 

If such notice is received five (5) working days or less from and including the date of the scheduled conference, inspection, or other attendance, NZDRC will charge a cancellation fee in the amount of 75% of the Expert’s daily Fee or part thereof as appropriate.

 

In the event that the dispute is settled or the agreement for Expert Determination is withdrawn by the parties, the Expert’s fees and expenses including any entitlement to cancellation fees will be deducted from the amount paid as security for the Expert’s fees and expenses. The balance of the security monies, if any, will be refunded to the parties in the proportions in which the security was originally paid by the parties unless the parties agree otherwise and instruct the Building Disputes Tribunal accordingly in writing within two (2) working days of notice of settlement or withdrawal.

 

Administration Fee payable on Withdrawal or Settlement of Claim

 

In any case where an application for Expert Determination is withdrawn or terminated, or the dispute between the parties is resolved after receipt by NZDRC of an application to appoint an Expert and before the provision of an Determination, NZDRC will charge a fee being not less than $750.00 in respect of the fees and expenses incurred in relation to the administration of the Expert Determination up to and including the date on which the application for Expert Determination was withdrawn or terminated or NZDRC was notified that the dispute had been resolved.

If you have any questions regarding NZDRC fees or when/how they are payable, please contact us on (09) 486 7153 or at registrar@nzdrc.co.nz

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