Construction Adjudication

In the construction industry, cash flow is king and disputes can be fatal to a project's timeline and budget. Construction adjudication is a fast-track dispute resolution process designed specifically for this high-pressure environment. It provides a swift and cost-effective way to resolve conflicts, ensuring that projects are not derailed by protracted legal battles. Whether you are a contractor, employer, or sub-contractor, understanding how to use adjudication effectively is a critical commercial skill.

At Central Chambers Law, our senior legal consultants are experts in construction law and dispute resolution. We have a profound, technical understanding of the adjudication process and the tactics required to secure a successful outcome. Our function is to provide clear, authoritative advice and to manage your adjudication from start to finish, deploying a robust strategy to protect your financial position and keep your project on track.

What is Construction Adjudication?

Adjudication is a statutory right for parties to a construction contract to resolve their disputes quickly. The process is governed by a strict, 28-day timetable (which can be extended by agreement) and results in a decision from an impartial adjudicator that is binding on the parties, at least on an interim basis. It is designed to provide a rapid resolution to keep money flowing and projects moving.

Common disputes referred to adjudication include:

• Payment Disputes: The most frequent cause for adjudication, including disagreements over the value of interim payments, the validity of pay less notices, and final account disputes.
• Delays and Extensions of Time: Claims for extensions of time and associated loss and expense due to project delays.
• Defective Works: Disputes over the quality of work and the cost of rectifying alleged defects.
• Variations: Disagreements about whether a particular instruction constitutes a variation to the contract, and how that variation should be valued.

The Legal Framework: The Construction Act

The right to adjudicate stems from the Housing Grants, Construction and Regeneration Act 1996 (often called the "Construction Act"). This Act implies terms into any "construction contract" giving either party the right to refer a dispute to adjudication "at any time."

The key principles are:

• Speed: The process is designed to be completed in 28 days from the date of the referral.
• Interim Binding Decision: The adjudicator's decision is legally binding and must be complied with unless and until it is overturned by a court or through arbitration. In practice, the adjudicator's decision is often the final word on the matter.
• Enforcement: A successful party can enforce an adjudicator's decision in the High Court (Technology and Construction Court) through a summary judgment procedure, which is also very quick.

The Adjudication Process: A Step-by-Step Guide

Adjudication is a formal process with a strict, compressed timetable. Every step must be executed with precision.

1. Notice of Adjudication: The complaining party (the "Referring Party") starts the process by serving a "Notice of Adjudication" on the other party. This document sets out the nature of the dispute and the remedy being sought.
2. Appointment of the Adjudicator: An adjudicator, who is an impartial expert in the subject matter of the dispute, is appointed. This is usually done through an Adjudicator Nominating Body (ANB) like the RICS or TECBAR.
3. Referral Notice: Within seven days of the Notice of Adjudication, the Referring Party serves their detailed "Referral Notice" and all supporting evidence on the adjudicator and the other party.
4. Response and Subsequent Submissions: The other party (the "Responding Party") has a short period (often just 7-14 days) to serve its "Response." Further submissions may be permitted by the adjudicator.
5. Adjudicator's Decision: The adjudicator must make their decision within 28 days of the Referral Notice being served, unless the parties agree to an extension. The decision will typically order a payment to be made or make a declaration about the parties' rights.

Why Central Chambers Law Provides the Definitive Representation

Construction adjudication is a high-speed, high-stakes process where there is no room for error. The compressed timetable demands a legal team that is organised, strategically astute, and expert in construction law.

Clients trust Central Chambers Law because we provide a strategic, tenacious, and highly efficient service designed for the intense pressure of adjudication. Our reputation is built on our ability to master complex technical and factual evidence within a tight timeframe and present a compelling case that wins. Our approach involves:

• Immediate, Authoritative Advice: We provide an urgent assessment of your position, determining the strength of your case and the most effective strategy to deploy, whether you are referring a dispute or responding to one.
• Deep Expertise in Construction Law: Our team has an intrinsic, technical understanding of the Construction Act, the standard form contracts (JCT, NEC etc.), and the case law that governs adjudication.
• Rapid and Forensic Preparation: We are experts at mobilising quickly to gather the necessary evidence, draft powerful submissions, and manage the strict procedural deadlines. We leave no stone unturned in building your case.
• Powerful Advocacy: Our senior advocates are experts at presenting complex arguments clearly and persuasively. We know how to focus the adjudicator's mind on the key issues that will win the case.

Our focused expertise means we are perfectly equipped to provide the intelligent and robust representation needed to succeed in the demanding environment of construction adjudication.

Protect Your Position with Immediate Expert Advice

If you are involved in a construction dispute, you must act immediately. Whether you are considering starting an adjudication or have just received a Notice of Adjudication, the clock is ticking. Delaying can severely prejudice your ability to prepare a successful case.

Contact our expert construction law solicitors immediately for an urgent and confidential consultation. Taking decisive action is the single most important step you can take to protect your commercial interests.

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