A party to a construction contract has the right to refer a dispute, arising under the contract, for adjudication by virtue of the Housing Grants, Construction and Regeneration Act 1996. The term 'construction contract' includes engagements of professionals providing design or advice in relation to construction operations. Broadly, adjudication is a summary process by which disputes between the parties to a construction contract are decided by a third party adjudicator. The adjudicator's decision is binding on the parties until the dispute is finally determined by legal proceedings, arbitration or Agreement.

The adjudicator must only decide the matters in dispute that are referred to him or her. The adjudicator has no jurisdiction to decide any other matters unless the parties to the dispute agree, or they are matters under the contract which s/he considers are necessarily connected with the dispute. In the construction industry, adjudication is used to obtain a quick neutral decision on disputes arising from a project. It is a form of rough and ready justice in which the adjudicator generally publishes a decision within 28 days from the start of the process, following service of a Notice of Adjudication by the referring party.

Adjudication should be distinguished from other forms of dispute resolution such as mediation, expert determination and arbitration. Adjudication differs from mediation because the adjudicator's function is not to facilitate an agreed compromise but to deliver an objective decision on the dispute. It is sometimes said that adjudication is a form of expert determination but this is slightly misleading as adjudication normally contains a judicial element which is lacking from expert determination. Unless agreed otherwise by the parties, an adjudicator should therefore make available to the parties any information to be taken into account in reaching a decision whereas by contrast an expert need not receive information from the parties and may proceed on the basis of their own information.

The advantage of the adjudication process is that a decision can be obtained very quickly. The disadvantage is that in a system of speedy adjudication, injustices can occur. The victims of mistakes will usually be able to recoup their losses by subsequent arbitration or litigation, and possibly even by a subsequent adjudication where the merits would justify taking further action. We can assist clients who wish to embark on adjudication or who receive notice of referral to an adjudicator, by ensuring that all the relevant information for submission to the adjudicator is put together quickly and efficiently. We can also represent our clients at meetings with the adjudicator to ensure that your case is put across clearly and any ambiguities in the case resolved.