Adjudication is the most commonly used formal dispute resolution process in the UK construction industry. Introduced under the Housing Grants, Construction and Regeneration Act 1996, it is designed to provide a fast and cost-effective way of resolving disputes while projects are ongoing and cashflow remains critical.
While adjudication is often described as a straightforward process, in practice it can be demanding and unforgiving. Decisions are frequently influenced not only by the underlying merits of a claim, but by how the dispute is framed, evidenced and presented within a very compressed timetable. Parties who underestimate the process can find themselves exposed to adverse decisions, avoidable cost and significant internal disruption.
This guide sets out a practical, step-by-step approach to preparing for an adjudication, with a particular focus on the early decisions that often have a decisive impact on the outcome.
Step 1: Understand the grounds of the dispute
Before taking any formal steps, it is important to clearly identify the nature and scope of the dispute. This includes understanding what the dispute is about, whether it concerns payment, valuation, delay, defective works, extensions of time, retention or another issue. You should also consider whether you have access to the documents that will be needed to support your position, such as the contract, correspondence, programmes, site records and payment documentation.
It is also essential to check whether the contract contains any procedural requirements or preconditions that apply before an adjudication can be commenced. Issues around notice, timing and scope can be difficult to correct once the adjudication is underway.
Step 2: Consider advice at an early stage
The adjudication timetable moves quickly. Once a notice of adjudication is served, the clock starts running, and key strategic decisions often need to be made within days.
Early advice can help to identify whether adjudication is the most appropriate route, define the scope of the dispute, and avoid jurisdictional or procedural issues that cannot easily be remedied later. Decisions taken before the Referral Notice is served frequently shape the entire adjudication.
Step 3: Gather and organise your evidence
Adjudication is heavily evidence-driven. The outcome will often turn on the quality, relevance and presentation of the supporting material rather than the volume of documents produced.
Relevant evidence commonly includes the construction contract and any amendments, payment notices and pay less notices, correspondence, site records, photographs, programmes and, where appropriate, expert material. Organising documents clearly and chronologically at an early stage can significantly reduce pressure later in the process.
Adjudication often involves presenting a coherent narrative explaining what happened, why it matters contractually, and how it leads to the outcome sought. Careful selection and presentation of evidence plays a central role in that process.
Step 4: Prepare a clear and focused Referral Notice
If you are the referring party, the Referral Notice is the central document in the adjudication. It sets the framework for the dispute and defines the issues the adjudicator will decide.
A well-prepared Referral Notice clearly identifies the dispute, explains the contractual and factual basis of the claim, refers to the supporting evidence, and specifies the relief sought. Overly broad or unfocused referrals can make it harder for the adjudicator to engage with the core issues.
Step 5: Manage the timetable and respond promptly
Once the adjudicator is appointed and the Referral Notice is served, the process accelerates. The responding party will often have between seven and fourteen days to prepare and serve its Response, sometimes while the project is still ongoing.
Replies, rejoinders and requests for clarification may follow, often within very short timeframes set by the adjudicator. The pace of the process can place significant pressure on internal teams, particularly where records are incomplete or dispersed.
If you are responding to an adjudication, early preparation is critical. Time lost at the outset is rarely recoverable.
Step 6: Maintain a clear and professional approach
Adjudicators are impartial decision-makers. Arguments are most effective when they are presented clearly, supported by evidence and focused on the issues that truly matter.
Exaggeration, unnecessary aggression or unfocused submissions can distract from the substance of the case. A measured and structured approach is more likely to assist the adjudicator in understanding your position.
Step 7: Be prepared for the outcome
An adjudicator’s decision is binding unless and until it is overturned in litigation or arbitration. In most cases, it must be complied with promptly.
If the decision is in your favour, it may be enforced through the courts if necessary. If the decision goes against you, payment or other relief may still be required even if you intend to challenge the outcome later. Costs are generally not recoverable, making early preparation particularly important.
Conclusion
Adjudication can be an effective way of resolving disputes quickly, particularly where cashflow or project progress is at stake. However, it is a process in which early decisions, careful preparation and clear presentation often make a decisive difference. Many risks can be reduced if they are identified and addressed before the adjudication timetable is fully engaged.
How CCC can assist
CCC regularly advises contractors, subcontractors and developers involved in adjudications across a wide range of projects. We assist clients in preparing for adjudication, developing clear and proportionate strategies, and managing the process efficiently under tight time constraints. Our focus is on helping parties present their case clearly and effectively, while avoiding common procedural and evidential pitfalls that can have lasting consequences.
