Adjudication
Adjudication is a way of resolving construction contract disputes. Essentially it is a process in which a neutral adjudicator makes a decision on a contractual dispute within an invariably short timescale.
Under Section 108 of the Housing Grants, Construction & Regeneration Act 1996 Part 2 (usually referred to as the Construction Act), everybody who is party to a Construction Contract has a right to have a dispute decided by an Adjudicator. This statutory right is irrespective of whether there is a right under the contract between the parties.
If your contract doesn’t contain rights to adjudicate or it does but they do not comply with the eight key principles of Section 108 of the Construction Act, then they will be disregarded and the default legislation, the Scheme for Construction Contracts comes into play.
The process is intended to be quicker and more economical than a more formal litigation. A decision in an adjudication is normally returned within 28 days of the matter being referred. This period may be extended if agreed.
Ordinarily Adjudication is employed to ensure payment of any sums correctly due. Having said this Adjudication can be used to resolve all manner of contractual disputes between the client, the design team, contractors and sub-contractors.
An Adjudicators decision is binding on the parties and is, more often than not, enforced by the courts in circumstances where a party refuses to pay.
Any party to the dispute still has the right, after the Adjudicators decision, to have the dispute heard in court or arbitration (subject to the contract terms). Since the Act came into force in 1998 the bulk of decisions are accepted as final by the parties.
ConstructPRO act as Party Representatives in Adjudications. We can support you throughout the process and ensure your submissions are compliant with any contract terms. We can also help you to defend any counter claims tabled by the responding party. For more information or an informal chat please get in touch today. Alternatively click here to request a call back.
Read about our Adjudication track record.
Click here to download a fact sheet on Adjudication.
