What is Adjudication in Construction?
Adjudication is a fast-track dispute resolution process designed specifically for the construction industry. Introduced under the Housing Grants, Construction and Regeneration Act 1996 (commonly known as the Construction Act), adjudication allows parties to resolve disputes quickly and cost-effectively without halting ongoing projects.
Why Adjudication Matters in UK Construction and Engineering
Construction and engineering projects are complex, involving multiple stakeholders, tight deadlines, and significant financial investments. Disputes are common—whether over payment, delays, standard of works or services, or contract interpretation. Adjudication provides a legally binding decision within 28 days (often extended to 42 days), and so offers a practical and speedy alternative to lengthy litigation or arbitration (and until overturned by these more protracted and costly dispute resolution processes).
When Can You Use Adjudication?
Where the express terms of contract provide the contracting parties the right to refer any disputes to Adjudication, or where the parties have entered into a ‘construction contract’ (as defined by the Construction Act). Parties to a ‘construction contract’ have the statutory right to refer a dispute to Adjudication at any time. A dispute may include issues such as:
- Non-payment or late payment
- Defective design, workmanship or materials
- Extensions of time and delay claims
- Valuation of variations
- Loss and expense claims
- Determination of contract terms
- Other breach of contract claims, including unlawful termination.
Even if the contract does not explicitly mention adjudication, the right to refer a dispute to Adjudication is a statutory right where the relevant contract is a ‘construction contract’.
The Adjudication Process: Step-by-Step
- A dispute crystallises: A dispute must have crystallised before the Adjudication can progress, failing which jurisdictional issues may arise.
- Notice of Adjudication: The referring party serves a written notice outlining the dispute.
- Appointment of Adjudicator: An adjudicator is appointed either by agreement or through a nominating body.
- Referral Notice: Within 7 days of the Notice of Adjudication, the referring party submits detailed evidence and arguments.
- Response: The responding party has the opportunity to respond to the referral. The Adjudicator will set the timeframe for submissions and given the tight timeframe for the decision, the responding party may only have 7 days to respond, including detailed evidence and arguments.
- Decision: The adjudicator must reach a decision within 28 days (extendable by agreement).
The decision is temporarily binding, meaning it must be complied with unless and until it is overturned by arbitration or litigation.
Enforcing Adjudicator’s Decisions
If a party refuses to comply, the Adjudicator’s decision can be enforced through the Technology and Construction Court (TCC). The courts strongly support adjudication and will generally uphold decisions unless the Adjudicator did not have jurisdiction, or there is a clear breach of natural justice and procedural fairness.
Benefits of Adjudication
- Speed: Decisions within 28 days
- Cost-effective: Lower legal costs than court proceedings or arbitration
- Continuity: Keeps projects moving
- Expertise: Adjudicators often have technical construction knowledge
- Enforceability: Decisions are legally binding and enforceable
How Wright Hassall’s specialist Construction and Engineering team can help
At Wright Hassall, we specialise in resolving construction and engineering disputes, including by way of Adjudication. Whether you're an employer, contractor, subcontractor, developer, or consultant, our experienced solicitors can:
- Advise on dispute resolution strategies, including Adjudication.
- Quickly assist with defending a referral to Adjudication within very tight timeframes. For example, we are experienced in (i) quickly providing strategic advice, (ii) assisting with the gathering of factual and expert witness evidence (liability and quantum) and (iii) producing robust responses within 7 days.
- Where available, to raise quick jurisdictional challenges in seeking to stop the Adjudication from the get-go (and/or preserving the jurisdictional challenge throughout to be relied on in any enforcement process).
- Enforce or challenge adjudicator’s decisions in court.
Whilst this note focuses on Adjudication, Wright Hassall’s specialist Construction and Engineering Team is also experienced in:
- All other dispute resolution processes, including litigation, arbitration, mediation, expert determination and negotiation;
- Providing project advisory services during the period of a project; and
- Drafting and reviewing construction contracts.
Get Expert Legal Advice Today
If you're facing a construction dispute, don’t wait. Contact our team of construction adjudication solicitors for a free initial consultation. We’ll help you protect your rights and keep your project on track.
