Adjudication has become a cornerstone in resolving construction disputes in the UK, offering a swift and cost-effective alternative to litigation. Introduced by the Housing Grants, Construction and Regeneration Act 1996 (often referred to as the “Construction Act”), adjudication allows parties to obtain a binding decision on disputes without the delays and expenses associated with court proceedings.
What is Adjudication?
Adjudication is a process where an independent adjudicator is appointed to resolve disputes between parties in a construction contract. The adjudicator’s decision, known as an “adjudication decision” or “award,” is binding unless and until it is revised by subsequent arbitration or court proceedings.
The process is designed to be fast, with a typical timeframe of 28 days from the referral of the dispute to the adjudicator’s decision, although this period can be extended with the agreement of both parties.
Why is Adjudication Important in Construction?
The construction industry is particularly prone to disputes due to the complexity and high stakes involved in projects. Issues such as payment delays, project variations, and contract performance can quickly escalate. Adjudication provides a mechanism to resolve these disputes promptly, allowing projects to continue with minimal disruption.
The key benefits of adjudication include:
- Speed: The speedy resolution of disputes helps prevent project delays, which can be costly and harmful to relationships between parties.
- Cost-effectiveness: Adjudication is generally less expensive than litigation, making it a viable option for parties seeking a quick decision.
- Binding and enforceable decisions: The adjudicator’s decision is binding and must be complied with immediately.
- Flexibility: The process is less formal than court proceedings, allowing for a more adaptable approach to dispute resolution.
Key Steps in the Adjudication Process:
- Notice of Adjudication: The process begins when one party serves a notice of adjudication, outlining the dispute and the desired remedy.
- Appointment of Adjudicator: An adjudicator is appointed either by agreement between the parties or by a nominating body, such as the Royal Institution of Chartered Surveyors (RICS).
- Referral Notice: The referring party submits a referral notice to the adjudicator, setting out the details of the dispute along with supporting evidence.
- Response: The opposing party has an opportunity to respond, usually within a short timeframe, often between 7–14 days.
- Adjudication Decision: The adjudicator reviews the submissions, may request further information, and issues a decision within 28 days (subject to any agreed extensions).
- Enforcement: The decision is binding and enforceable in court, ensuring compliance unless it is successfully challenged in subsequent proceedings.
While adjudication offers numerous advantages, it is not without its challenges.
Adjudication plays a pivotal role in the construction industry by offering a rapid, binding resolution to disputes. This process enables projects to proceed without the lengthy delays associated with litigation, preserving commercial relationships and ensuring cash flow. For construction professionals, understanding the adjudication process is vital for effectively navigating disputes and maintaining project momentum.
Construction Dispute Solicitors – Contact Us
If you are involved in a construction dispute and require advice on pursuing adjudication or exploring other options, seeking legal counsel is recommended to fully understand your rights and choices.
For further information, please contact Associate Solicitor Faiza Raqeeb at 020 7613 7126 or via email at f.raqeeb@rfblegal.co.uk.
Faiza Raqeeb
Associate Solicitor
