{"id":185991,"date":"2024-01-24T05:57:26","date_gmt":"2024-01-24T05:57:26","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=185991"},"modified":"2026-09-21T03:53:23","modified_gmt":"2026-09-21T02:53:23","slug":"adjudication-award","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/adjudication\/","title":{"rendered":"A Guide to Adjudication for Commercial Disputes"},"content":{"rendered":"\n

Construction adjudication in the UK allows an independent adjudicator to decide a construction contract dispute without a full court trial. The Housing Grants, Construction and Regeneration Act 1996<\/a><\/em> gives parties to qualifying construction contracts a right to adjudication. Adjudicators normally decide within 28 days of referral, although permitted extensions can lengthen the process. Adjudication decisions generally bind both parties until a court, an available arbitration process or an agreement finally resolves the dispute. This article explains eligibility, adjudication deadlines, costs, enforcement, challenges and how to organise evidence for a construction payment claim.<\/p>\n\n\n\n

What is adjudication?<\/h2>\n\n\n\n

Adjudication is a form of alternative dispute resolution<\/a>, meaning a way to resolve disputes outside a court trial. An independent adjudicator considers the evidence and decides the dispute. Construction businesses often use it to resolve disagreements about payment, defective work or contractual responsibilities.<\/p>\n\n\n\n

You may hear it described as \u201cpay now, argue later\u201d. A party ordered to pay usually needs to comply before pursuing a final decision elsewhere. This can help a contractor meet its own bills while the wider disagreement continues.<\/p>\n\n\n\n

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Statutory adjudication means the right comes from legislation. Outside that right, businesses need an agreement allowing adjudication.<\/p>\n<\/div>\n\n\n\n

The applicable rules therefore depend on the contract and the dispute. Check your dispute resolution clause<\/a> before choosing a route.<\/p>\n\n\n\n

Adjudication is often less formal than arbitration, but it still requires evidence and a fair procedure. LegalVision\u2019s disputes and litigation services<\/a> cover options for resolving business disagreements.<\/p>\n\n\n\n

Which contracts qualify for adjudication?<\/h2>\n\n\n\n

The Housing Grants, Construction and Regeneration Act 1996<\/em><\/a> gives parties to qualifying construction contracts a right to adjudicate contractual disputes. Working in construction does not automatically bring every agreement within the Act. You need to check the work covered, the contracting parties and any exclusions.<\/p>\n\n\n\n

Contracts covered by the Construction Act<\/h3>\n\n\n\n

Qualifying construction operations include building, alterations, repairs and decoration. They also include site preparation and installing systems such as heating, lighting and power. Architectural, design and surveying services connected with construction operations can also qualify.<\/p>\n\n\n\n

An oral agreement can qualify. Parliament removed the general writing requirement through the Local Democracy, Economic Development and Construction Act 2009<\/em><\/a>. The change applies to contracts entered into from 1 October 2011 in England and Wales.<\/p>\n\n\n\n

Keep quotations, instructions and emails even without a signed contract. You may need them to establish what the parties agreed and who owes payment.<\/p>\n\n\n\n

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“Treat the payment calculation as part of your evidence, not simply the amount you want to recover. A clear link between each disputed charge and the supporting records helps the adjudicator follow your case.”<\/p>\n <\/blockquote>\n

\n \"Paula
\n Paula Kumar<\/span>\n Practice Leader, LegalVision<\/span>\n <\/figcaption>\n <\/figure>\n<\/div>\n\n\n\n

Exclusions and the Scheme for Construction Contracts<\/h3>\n\n\n\n

The residential occupier exclusion concerns contracts principally for work on a home that a contracting party occupies or intends to occupy. It does not exclude every contract involving residential property. For example, a subcontract between construction businesses requires its own assessment.<\/p>\n\n\n\n

Other exclusions cover specified operations, including drilling for oil or natural gas and extracting minerals. The Act also distinguishes supplying materials from supplying and installing them.<\/p>\n\n\n\n

The Scheme for Construction Contracts (England and Wales) Regulations 1998<\/em><\/a>, as amended, supplies default adjudication rules. These apply when a qualifying contract lacks compliant adjudication provisions. Check the relevant version and contract date before relying on the Scheme.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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