What adjudication is
Adjudication is a dispute resolution process under Housing Grants, Construction and Regeneration Act 1996 (the 'Construction Act'). Process: party serves notice of adjudication; adjudicator appointed (typically from RICS, RIBA, or specialist panel) within 7 days; written submissions; decision within 28 days (extendable to 42 days with consent). Decision binding subject to court challenge; enforceable as court judgment. Cost £1,800–£4,500 in adjudicator fees (typically split or paid by losing party); add £950–£2,800 for legal representation; total £2,800–£7,500. Compare to court: 12–24 months; £10,000–£50,000 legal fees; same result. Adjudication speeds resolution but technical — typically requires legal/QS support. Best for: payment disputes (interim valuation, withholding); variation valuation disputes; final account disagreements; programme delay claims. Less suited to: complex technical defect disputes (better via expert determination); multi-party disputes.
Adjudication on domestic contracts
Construction Act adjudication is mandatory on all construction contracts EXCEPT those with a residential occupier — i.e. owner-occupier renovation contracts are EXCLUDED unless adjudication is contractually agreed. Most JCT residential contracts include adjudication clauses voluntarily — JCT Minor Works, JCT Intermediate, JCT Standard all incorporate adjudication. FMB domestic contracts also include adjudication. Bespoke contracts: verify adjudication clause exists. Without contractual adjudication, parties must resort to court or arbitration for binding decisions. At contract signing, ensure adjudication clause present — provides fast resolution route. Most adjudicators residential-experienced now; understand domestic disputes; balance technical and consumer perspectives. RICS Dispute Resolution Service, RIBA, Construction Industry Council Adjudication Procedure all maintain panels of residential-experienced adjudicators.
Process step by step
(1) Notice of adjudication served by claimant on respondent — names dispute, identifies adjudicator nominating body, requests appointment. (2) Adjudicator appointed within 7 days. (3) Claimant submits referral notice + supporting evidence within 7 days of appointment — written case, photographs, contract documents, valuations. (4) Respondent submits response within 14 days. (5) Adjudicator may request further submissions, site visit, or oral hearing — typically held within 14 days of referral. (6) Adjudicator issues written decision within 28 days of referral (extendable to 42 with consent). (7) Decision: includes findings of fact, legal analysis, monetary award (if any). (8) Enforcement: if loser doesn't pay within decision deadline, winner applies to Technology and Construction Court for summary judgment (typically granted within 4–8 weeks). Adjudicator's decision is binding pending arbitration or court — most parties accept and don't challenge.
Strategy and practical advice
Adjudication is fast and decisive — strong tool for cash-flow-critical disputes. Strategy: (1) Time matters — claimant chooses timing; refer when respondent under pressure (e.g. mid-project for ongoing payment dispute). (2) Quality of submissions matters — adjudicator decides on evidence presented; not court-style cross-examination. Strong written case with clear evidence wins. (3) Engage QS/lawyer for technical disputes — adjudicators expect commercially-aware submissions. (4) Don't refer ambiguous disputes — adjudicator will decline jurisdiction if dispute not clear. (5) Decision binding pending challenge — court challenge possible on narrow grounds (jurisdiction, natural justice) but rare to succeed. (6) Pay decision promptly even if appealing — failure to pay risks costs and reputation. (7) Most decisions hold up on later arbitration/court — adjudicator decisions are robust.
