Construction Adjudication

Construction adjudication is a fast, documents-based procedure. Although each case varies, the key procedural elements are broadly the same. The guidance below explains the main …

Construction adjudication is primarily governed by statute. The following explains the key legal instruments and the rights they provide. The Housing Grants, Construction and Regeneration …

Adjudication decisions are binding but not final. The rules governing mistakes, challenges and appeals are strict and limited. If the Adjudicator Gets It Wrong or …

Adjudication decisions are expected to be complied with promptly. The courts provide a fast and supportive enforcement mechanism. If a Party Does Not Comply with …

Adjudicators play a central role in ensuring that construction adjudication is fair, independent and efficient. Who Is the Adjudicator and What Do They Do? The …

The Construction Act gives a party to a construction contract the right to refer a dispute arising under the contract to adjudication.

What constitutes a ‘dispute’ can cover a single issue between the parties (such as a single disputed variation) or everything in dispute between them at the time. For example, there might be a dispute over all of the parties’ respective entitlements at interim application or final account stage, including arguments about the work in the original scope, variations, delay, extension of time, loss and expense, defects and contra-charges.

The wording of the adjudication clause can also affect what matters can be referred to adjudication.

The adjudication timeline depends on:

A referring party serves a notice of adjudication, then has 7 days to commence an adjudication by serving its referral. The adjudicator then has to reach a decision within 28 days from the date of the referral. This can be extended by up to 14 days by the referring party only, or longer if both parties agree.

Many adjudications take 5-8 weeks.

Subject to statutory limitation periods which bar claims (12 years for deeds and 6 years for other contracts), a party can take as long as it likes to prepare its adjudication documents before starting an adjudication.

Yes, but it is often not advisable to refuse to participate, as the adjudicator should proceed to make a decision anyway if they have jurisdiction.

Sometimes there might be good reason not to participate, for example if you are certain the Adjudicator does not have jurisdiction, but you should always seek specialist advice.

Yes, final account disputes, including those involving outstanding payments, variations, or extensions of time, can be referred to adjudication.

Yes.

In recent years, to address concerns about the growing expense and complication of adjudication, low value adjudication procedures have been produced and are growing in popularity.

The Royal Institution of Chartered Surveyors (RICS) acts as an adjudicator nominating body and allows appointments of Adjudicators to out suitable adjudications subject to the Construction Industry Council (CIC) Low Value Disputes Model Adjudication Procedure.

The Technology and Construction Solicitors’ Association (TECSA) also acts as an adjudicator nominating body and has its own Low Value Disputes Service.

Each of these procedures are different from each other, but they are both intended to deal with more straightforward adjudications of a limited value and they both cap the fees of the adjudicator.

Yes, adjudication is specifically designed to be used even while construction is ongoing. Adjudication is intended to allow work to continue while resolving disputes, helping to maintain cash flow and avoid project delays.

Adjudicator decisions are not considered to be confidential unless the parties have entered into a confidentiality agreement. Some construction contracts include confidentiality provisions and some adjudication rules do as well. An adjudicator’s terms may also include provisions on confidentiality.

That being said, it is probably prudent to keep adjudication confidential.

If your adjudication goes to court for enforcement, then at least some of the details of your dispute are likely to be made public.

The party that started the adjudication is typically referred to as the ‘Referring Party’.

They must draft and issue the notice of adjudication and referral to adjudication and appoint the adjudicator if the Responding Party will not agree to a particular person acting as adjudicator.

The ‘Responding Party’ is the party defending an adjudication. They may provide a Response to the Referral which sets out their position and includes all of the documents they rely on.

Adjudication is a quick, temporary dispute resolution method which results in a decision which is binding but not final, while arbitration is a more formal process that results in a decision (properly called an award) which is both binding and final.