Construction Adjudication

Yes, we offer free consultations to clients during which you will discuss your construction dispute with one of our expert construction lawyers to determine the scope of the issue, the solutions and how we may be able to assist in achieving the best outcome for you.

Our expert construction dispute lawyers are experienced in both contentious including payment disputes and non-contentious construction related issues and will be able to provide you with expert advice on your concern. Please do not hesitate to book a Free Consultation with one of our lawyers today on 0207 459 4037 or complete our conline booking form.

Adjudication is a swift and cost-effective method of resolving disputes arising in the construction sector. Designed to be interim in nature, the process involves the appointment of an independent third party, the adjudicator, who reviews the evidence presented by both parties on paper and delivers a decision, usually within 28 days. This method ensures that construction disputes do not hinder the progress of construction projects but unless necessary action is taken quickly disputes can cause significant cash flow issues, ruin relationships and delay construction work on the project.

Case Example: A contractor, Client A, believed they were underpaid for additional works undertaken. Rather than letting this dispute disrupt the project, the matter was referred to adjudication. Within a month, the adjudicator ruled in favour of Client A, allowing them to secure their payment and continue work with minimal interruption.

Our expert construction lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when construction disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

In England and Wales, the primary legislation governing construction adjudications is the Housing Grants, Construction and Regeneration Act 1996, commonly known as the “Construction Act”. The Act, along with its amendments, establishes the framework and rights for parties in construction contracts to refer construction disputes to adjudication. There are several key provisions of the Construction Act which apply to adjudications including:

• Section 104: Defines what a “construction contract” is for the purposes of the Act, which, in turn, determines which contracts can utilise the adjudication process.
• Section 108: Stipulates every construction contract should have provisions allowing for disputes to be adjudicated. It lays out the basic procedural requirements of such an adjudication:
  • The right to refer a dispute to adjudication at any time.
  • An adjudicator must be appointed within seven days of the notice.
  • The decision by the adjudicator should be given within 28 days of referral, with the possibility of extension if both parties agree.
  • The decision of the adjudicator is binding until the dispute is finally determined by legal proceedings, arbitration, or by agreement.
• Section 109: Deals with periodic payments in construction contracts which are commonly subject to construction adjudication.
• Section 110: Sets out the requirements for payment mechanisms in contracts, and introduces the concept of “Pay Less Notices”, which if not issued correctly, can be subject to adjudication.
• Section 111: Requires notice to be given for withholding payment, and any disputes arising from this can be referred to adjudication.

Our expert construction dispute lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when construction disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Adjudication is designed to be a faster and more streamlined process compared to constructilitigation or arbitration. Key differences include:

• Duration: Adjudication usually delivers decisions within 28 days, while litigation or arbitration can span months or even years.
• Interim Nature: Adjudication decisions are binding until determined by litigation, arbitration, or agreement, allowing parties to progress with their projects.
• Cost: Adjudication is often more cost-effective than the potential expenses of extended court or arbitration proceedings.

Case Example: Client O had a subcontractor dispute over work quality. Instead of proceeding to court, they chose adjudication. A decision was made in weeks, saving Client O both time and money.

Parties can refer a dispute to adjudication at any time if the construction contract permits adjudication or it is implied by statute (like the Construction Act). If the contract outlines specific circumstances or timescales for referring a dispute, those guidelines must be adhered to.

Case Example: Client D had ongoing payment delay issues with their employer. Their contract permitted adjudication only after 60 days from the invoice date. After this period, they successfully initiated the adjudication process.

Adjudication is not inherently compulsory for all construction contracts. The Housing Grants, Construction and Regeneration Act 1996 mandates that all parties to a construction contract have the right to refer a dispute to adjudication. However, parties can mutually agree on other forms of dispute resolution like mediation, arbitration, or litigation. It should be noted that, unless expressly excluded, adjudication remains an available option for parties, and its decisions are binding unless and until overturned by subsequent arbitration or construction litigation.

Case Example: Client O had a clause in their construction contract allowing for arbitration as the primary dispute resolution method. However, when a swift resolution was needed, they exercised their right to adjudication, permitted by the Construction Act, and achieved a timely resolution and we were able to recover over £60,000 for our client.

Anyone can act as an adjudicator, provided they are accepted by both parties or appointed by a nominating body specified in the contract. However, given the technical and legal complexities of construction disputes, it is advisable for adjudicators to have relevant qualifications and experience in construction law and industry practices. Many construction adjudicators are chartered surveyors, engineers, architects, or solicitors with specific expertise in construction disputes.

The adjudication process is designed to be swift. From the date of referring a dispute to adjudication, an adjudicator typically has 28 days to reach a decision. This timeline can be extended up to 42 days if the referring party agrees. Given this rapid timeframe, parties must be prepared to submit their evidence and arguments promptly.

Case Example: Client O referred a payment dispute to adjudication. Thanks to quick preparation and submission of documents, the adjudicator delivered a decision in their favour within the 28-day window.

Our expert construction lawyers have extensive experience and success in resolving construction disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Adjudication is a document-based process. Parties usually present:

• The construction contract or agreement
• Relevant correspondence like emails, letters, and notices
• Records of work, including timesheets, site diaries, and progress reports
• Any claims or counterclaims made, along with their justifications
• Expert reports, if needed, to support technical points
• Witness statements to corroborate factual matters

Our expert construction dispute lawyers in London have extensive experience and success in resolving construction disputes quickly and cost effectively through adjudication. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

The adjudicator reviews all submitted documents, evidence, and arguments from both parties. The decision is based on the facts of the dispute, the terms of the construction contract, and applicable laws. The adjudicator’s decision is temporarily binding. This means that parties must comply with it immediately, but it can be revisited later through arbitration or litigation if one party remains unsatisfied (and can seek a true value determination).

Yes, while the adjudicator’s decision is binding in the immediate term, parties have the right to challenge or appeal it via arbitration or litigation. However, any challenge must be initiated within the timescales set out in the contract or, if silent, as soon as reasonably possible.

Our expert construction lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Adjudication costs can vary. They typically comprise the adjudicator’s fees and any expenses they might incur. Parties might also incur their own legal and expert costs. Most construction contracts state that each party bears its own costs, but the adjudicator can decide who pays their fees, often the losing party.

Our expert construction lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Adjudication is primarily a UK-centric method. However, similar mechanisms might exist in other jurisdictions. For international projects, parties often opt for international arbitration, which provides a neutral forum and is enforceable in many countries.

If a party does not adhere to the adjudicator’s decision, the other party can enforce the decision through the courts by way of a claim for enforcement. This is typically a swift process. The courts generally support and uphold adjudicators’ decisions unless there is a clear breach of natural justice or the adjudicator acted outside of their jurisdiction.

Case Example: Client D faced non-compliance from the other party post-adjudication. With our legal assistance, they quickly secured a court enforcement, ensuring the decision was upheld and implemented.

Adjudication can be initiated at any time, if the construction contract allows it. However, general legal limitation periods apply, meaning claims related to written contracts usually have a 6-year limit from the date the cause of action arose, while claims tied to deeds have a 12-year limit.

Our expert construction team has extensive experience and success in resolving payment disputes quickly and cost effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today.

Adjudication is a relatively quicker and less expensive dispute resolution method compared to litigation. Decisions are reached within 28 days (extendable by 14 days with consent), ensuring speedy resolutions. This reduces prolonged disruptions and helps maintain cash flow.

What are the key advantages of choosing adjudication as a method of resolving construction disputes?

There are several key advantages to adjudication in construction disputes including:

• Speed: Adjudication provides a fast-track resolution, usually within 28 days.
• Cost: It is generally cheaper than prolonged court battles.
• Flexibility: The process is less formal, allowing more adaptability in approach.
• Expertise: Adjudicators often have industry-specific knowledge, ensuring a thorough understanding of the dispute’s nuances.

Our expert construction dispute lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when construction disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Yes, in exceptional circumstances, a party can seek a stay in the adjudication proceedings. Such instances may include severe financial difficulties of the paying party (where enforcement might push them into insolvency) or if there’s evidence of fraud. However, these stays are rarely granted, as adjudication aims for a swift resolution.

Our expert construction lawyers have extensive experience and success in resolving construction disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today.

Yes, the conduct of adjudication proceedings is primarily governed by the Scheme for Construction Contracts, which acts as a default set of rules if the construction contract does not specify its own. These guidelines cover the appointment of the adjudicator, timelines, and the process of the proceedings.

“Adjudication-friendly” clauses can be advantageous in situations where parties aim for a swift, less adversarial dispute resolution method. It is particularly beneficial for long-term projects, where maintaining a good working relationship is crucial. Such clauses often stipulate timelines, the nomination process for adjudicators, and other procedural details.

While adjudication decisions are binding on an interim basis, parties can later seek a final resolution through litigation or arbitration. If a party fails to comply with an adjudicator’s decision, the courts generally enforce it unless there’s evidence of adjudicator bias, a breach of natural justice, or jurisdictional issues.

Case Example: After Client M received a favourable adjudication decision, the opposing party challenged it in court. With our representation, the court upheld the adjudicator’s decision, validating Client M’s claims.

Our expert construction dispute solicitors have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Interim and final adjudication decisions are distinguished mainly by their longevity and the scope of the issues they address. Interim decisions address disputes arising during the project and are temporary in nature. They aim to maintain project progress without disruptions. The focus is often on interim payments, work progress, or temporary remedies. These decisions can be revisited and potentially revised in a final adjudication or another dispute resolution method.

Final adjudication decisions, on the other hand, are determinative of the issues presented. They address disputes usually arising at the project’s conclusion and provide a more permanent resolution. Typically, final decisions are binding unless challenged in court or through arbitration within the prescribed time.

Adjudicators’ fees can be based on several factors, including the adjudicator’s hourly or daily rate, the complexity and length of the dispute, and the amount claimed. In some cases, adjudication institutions or bodies have set fee scales. The parties may also agree on a fixed fee at the outset of the adjudication.

Usually, the adjudicator’s appointment terms will dictate who pays the fees. Typically, each party is responsible for their own costs, and they split the adjudicator’s fees equally. However, the adjudicator can, in some instances, decide that one party should pay a larger portion or all the fees, particularly if one party’s conduct has unnecessarily increased costs.

Adjudication is a private dispute resolution process, and all parties involved typically treat the proceedings, documents, and the decision as confidential. However, the degree of confidentiality can be influenced by the terms of the construction contract or the rules of the adjudicating institution chosen by the parties. While the adjudicator’s decision itself is confidential, if enforcement in court becomes necessary, aspects of the decision might become public.

It is essential for parties to be aware of and respect the confidentiality of the process. This ensures that sensitive commercial information or strategic positions are not inadvertently disclosed.

Adjudication is designed to provide a swift resolution to construction disputes, making it suitable for many types of disagreements. However, certain disputes might not be ideal for adjudication due to their complexity, the need for extensive evidence or witnesses, or where a precedent-setting decision is sought. Examples include:

• Complex disputes requiring extensive expert testimony, which might be better suited for arbitration or litigation where there is more time for evidence presentation and cross-examination.
• Disputes revolving around intricate legal points or novel issues that might be more appropriately dealt with in a court setting to establish a legal precedent.
• Situations where relationships between the parties are particularly contentious and one party might not respect an adjudicator’s decision, thus requiring court intervention.

Our expert construction lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.

Generally, adjudication addresses a single dispute arising from a contract. However, the parties can mutually agree to have multiple disputes adjudicated together if they believe it is efficient and the issues are interlinked. It is crucial to ensure that the scope of the adjudicator’s jurisdiction is clearly defined when addressing multiple disputes in one proceeding.

However, there are potential pitfalls. Combining disputes might complicate the adjudication, potentially making it less efficient than if each dispute were addressed individually. Furthermore, if it is found that the adjudicator lacked jurisdiction over one of the disputes, their decision on that matter could be unenforceable.

Our expert construction dispute lawyers have extensive experience and success in resolving payment disputes quickly and cost-effectively to ensure that the project is not delayed and cash flow is not impacted by any dispute with a client or sub-contractor. It is important to act fast when disputes arise. Please do not hesitate to call us for a Free Consultation today on 0207 459 4037.