Construction Adjudication - Fast-Track Dispute Resolution

Construction adjudication provides a rapid, cost-effective method for resolving construction disputes. Under the Construction Act 1996, parties have a statutory right to adjudication, with binding decisions issued within 28 days, making it the preferred method for resolving payment disputes and other construction conflicts.

What Our Construction Adjudication Solicitors Can Help With

• Payment Disputes: Recovering unpaid invoices and interim payments
• Final Account Disputes: Resolving disagreements over project costs
• Variation Claims: Disputes over additional work and cost variations
• Extension of Time Claims: Delays and completion date disputes
• Set-off Disputes: Challenging deductions and contra-charges
• Retention Money Claims: Recovering withheld retention funds
• Contract Interpretation: Disputes over contract terms and obligations
• Adjudication Enforcement: Enforcing adjudication decisions in court

The Construction Adjudication Process

Step 1: Notice of Adjudication:

• Formal notice stating intention to refer dispute
• Brief details of the dispute and relief sought
• Served on all parties to the dispute
• Starts the adjudication timetable

Step 2: Adjudicator Appointment:

• Parties can agree on adjudicator selection
• Adjudicator nominating bodies (ANBs) if no agreement
• Adjudicator must accept appointment within 2 days
• Confirming availability for 28-day timetable

Step 3: Referral Notice:

• Detailed case presentation within 7 days
• All supporting documents and evidence
• Witness statements and expert reports
• Served on adjudicator and other parties

Step 4: Response Period:

• Responding party has 7 days to reply
• Can include counter-claims and additional evidence
• Defence to claims and alternative arguments
• Expert evidence and supporting documentation

Step 5: Decision Period:

• Adjudicator has 28 days from referral to decide
• Can be extended by 14 days with consent
• Further extensions only by agreement of all parties
• Decision must be in writing with reasons

Types of Construction Adjudication

Payment Adjudications:

• Interim Payment Claims: Monthly or staged payment applications
• Final Account Disputes: End of project account disagreements
• Retention Release: Recovery of retention money
• Pay Less Notices: Challenging payment deductions
• Set-off Claims: Disputes over contra-charges

Technical Adjudications:

• Defective Work: Quality and workmanship disputes
• Variations: Additional work valuation
• Extensions of Time: Delay and completion disputes
• Contract Interpretation: Meaning of contract terms
• Termination Disputes: Contract termination validity

Adjudication vs Other Dispute Resolution

Advantages of Adjudication:

• Speed: 28-day decision compared to 12+ months for litigation
• Cost: Lower costs than court proceedings
• Cash Flow: Maintains project cash flow during disputes
• Specialist Expertise: Construction industry adjudicators
• Interim Finality: Binding until final determination
• Statutory Right: Cannot be excluded from construction contracts

Limitations:

• Decisions are interim binding, not final
• Limited time for complex technical issues
• Can be challenged in court or arbitration later
• May not suit multi-party disputes

Preparing for Construction Adjudication

Essential Documentation:

• Construction Contract: Main contract and any amendments
• Correspondence: All relevant project correspondence
• Payment Applications: Invoices, valuations, and payment notices
• Variation Records: Instructions, quotations, and approvals
• Programme: Project programmes and progress records
• Technical Evidence: Drawings, specifications, and site records

Expert Evidence:

• Quantum experts for valuation disputes
• Programming experts for delay claims
• Technical experts for defective work claims
• Contractual experts for interpretation issues

Adjudication Costs and Funding

Adjudicator Fees:

• Daily rates: £1,000-£3,000 per day
• Total fees: £5,000-£25,000 for typical adjudication
• Complex cases: £25,000-£50,000+
• Usually shared equally between parties

Legal Costs:

• Solicitor fees: £200-£600 per hour
• Total legal costs: £10,000-£50,000
• Expert witness fees: £2,000-£15,000
• Administrative costs: £1,000-£3,000

Cost Recovery:

• Each party usually bears own costs
• Adjudicator fees shared (unless otherwise decided)
• Successful party may recover costs in subsequent proceedings
• Consider cost implications before commencing

Enforcing Adjudication Decisions

Court Enforcement:

• Summary judgment applications for unpaid decisions
• High success rate for properly conducted adjudications
• Limited defences available to enforcement
• Typically resolved within 2-3 months

Grounds for Refusing Enforcement:

• Breach of natural justice
• Adjudicator exceeding jurisdiction
• Failure to comply with adjudication procedure
• Invalid construction contract

Why Choose SolicitorConnect for Construction Adjudication

• Adjudication Specialists: Solicitors with extensive adjudication experience
• Fast Response: Understanding the urgent timescales involved
• Technical Knowledge: Construction industry expertise and understanding
• Strategic Approach: Maximising chances of success within tight deadlines
• Enforcement Experience: Proven track record in enforcing decisions
• Cost Management: Efficient case handling to control legal costs

Construction adjudication provides an effective way to resolve disputes quickly and maintain project cash flow, but requires specialist legal expertise to navigate the tight deadlines and complex procedures.

This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.