Construction Adjudication: Our Nationwide Network

Adjudication in Construction Disputes

Construction disputes often need to be resolved quickly. Delays in payment, disagreements over works completed, and disputes over contractual obligations can have a serious impact on cash flow and project delivery. This is why construction adjudication has become one of the most important methods of dispute resolution in the construction industry.

At Expert Commercial Law, we connect businesses and individuals with solicitors and legal professionals experienced in adjudication in construction disputes. We help clients take fast and practical action where disputes arise.

Whether the issue relates to payment, delay, defective works, or disagreements under a construction contract, adjudication can provide a quicker and more cost effectively managed route to resolution than full court proceedings.

What is Construction Adjudication?

Construction adjudication is a formal but relatively fast process used for resolving disputes arising under a construction contract.

It was introduced under the Housing Grants, Construction and Regeneration Act 1996. The legislation gives a party to a construction contract the right to refer a dispute to adjudication at any time.

This right applies to many commercial construction relationships involving contractors, subcontractors, developers, consultants, and other parties involved in a construction project.

The purpose of adjudication is to provide a quick decision so that projects can continue without lengthy delays caused by unresolved disputes.

Why Adjudication is Common in Construction Disputes

Unlike traditional litigation, adjudication is designed to move quickly. In many cases, an adjudicators decision is reached within 28 days, making it one of the fastest formal methods of dispute resolution available.

This is particularly important in the construction sector where:

• Delayed payments affect cash flow
• Projects cannot be paused indefinitely
• Ongoing commercial relationships need to be preserved
• Immediate certainty is often more valuable than prolonged litigation

We often see businesses delay taking action because they assume court proceedings are the only option. In practice, adjudication in construction disputes is often the most practical first step.

Common Construction Disputes Suitable for Adjudication

Adjudication is commonly used for a wide range of construction disputes, including:

• Payment disputes and unpaid applications
• Interim payment disputes
• Final account disputes
• Extension of time claims
• Defective works claims
• Variations and valuation disputes
• Retention disputes
• Breach of contract claims under a construction contract

Many disputes involve a combination of these issues, particularly on larger projects.

The Adjudication Process

Understanding the adjudication process is important for both the referring party and the responding party.

Step 1: Notice of Adjudication

The process begins when the referring party serves a notice of adjudication.

This document sets out:

• The nature of the dispute
• The parties involved
• The remedy being sought
• The intention to refer the dispute to adjudication

The notice of adjudication is a critical document because it defines the scope of the dispute that will be considered.

Getting this wrong can create problems later, so early legal input is often important.

Step 2: Appointment of the Adjudicator

Once the notice is served, an adjudicator must be appointed.

This may happen through:

• Agreement between the parties
• A nominating body specified in the contract
• A professional adjudicator appointing authority

The adjudicator must remain impartial and independent throughout the process.

Step 3: Referral Notice

After the notice of adjudication, the referring party must serve the referral notice, usually within 7 days.

The referral notice provides the full details of the claim, including:

• Legal arguments
• Supporting documents
• Evidence
• Contractual analysis

This is often the most detailed part of the claim and can significantly influence the outcome.

Step 4: Response From the Responding Party

The responding party then has an opportunity to reply, providing their own evidence and legal arguments.

Depending on the complexity of the dispute, there may be further submissions, meetings, or requests for clarification from the adjudicator.

Because the process moves quickly, preparation is critical.

Step 5: The Adjudicator’s Decision

In most cases, the adjudicators decision must be issued within 28 days from the referral. However, this can sometimes be extended by agreement, often by a further 14 days.

This speed is one of the main reasons why adjudication is so widely used in construction disputes.

The decision is temporarily binding. This means it must usually be complied with immediately, even if one party later challenges it in court or arbitration.

Is the Adjudicator’s Decision Final?

An adjudicators decision is usually binding on an interim basis.

This means:

• The decision must generally be followed
• Payment may need to be made immediately
• The matter can still be reviewed later through litigation or arbitration if necessary

In practice, many disputes end after adjudication because the parties accept the commercial reality of the outcome.

Costs of the Adjudication

One of the reasons adjudication is attractive is that it can often resolve disputes more cost effectively than full litigation.

However, the costs of the adjudication still need to be considered.

These may include:

• Solicitors’ fees
• Expert evidence where required
• Adjudicator’s fees
• Contractual recovery issues depending on the agreement

Unlike court proceedings, recovering costs is not always straightforward, so strategic planning is important.

Construction Adjudication vs Court Proceedings

While some disputes ultimately require court action, adjudication is often the preferred first step.

Compared to court proceedings, adjudication offers:

• Faster decisions
• Lower disruption to projects
• Greater commercial practicality
• Improved cash flow certainty

This makes it particularly useful where businesses need urgent answers rather than prolonged litigation.

Our Approach to Construction Adjudication

At Expert Commercial Law, we do not provide legal advice directly. Our role is to connect clients with solicitors experienced in construction adjudication and adjudication in construction disputes.

We help by:

• Understanding the nature of your dispute
• Identifying whether adjudication is appropriate
• Connecting you with professionals experienced in construction law
• Supporting early action where urgent payment or enforcement is required

Because adjudication moves quickly, early involvement from the right specialists can make a significant difference.

The Importance of Early Action

Timing is critical in construction disputes.

Delays can:

• Weaken your position
• Affect cash flow
• Increase project disruption
• Reduce the chances of recovery

Whether you are the referring party or the responding party, taking advice early improves the chances of a stronger outcome.

Take the Next Step

If you are involved in a dispute under a construction contract, understanding your rights under the Housing Grants Construction and Regeneration Act 1996 is essential.

At Expert Commercial Law, we connect businesses with professionals experienced in construction adjudication, helping clients manage disputes quickly and commercially.

Whether the issue involves payment, delay, defective works, or wider construction disputes, we can help connect you with the right legal professionals.

Tell us about your dispute today and we will connect you with the right specialists for your construction adjudication matter.