At Altion Law, our construction adjudication solicitors specialise in representing businesses in the construction industry in resolving disputes, including through adjudication. We offer cost-effective, commercial advice with a view to resolving our clients’ issues swiftly while protecting their interests and the project.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
What is Adjudication?
Disputes are rife in the construction industry, when projects often involve multiple parties, all with competing interests they need to protect. Resolving such disputes quickly is essential in keeping the project on track, which is why the law gives parties to a construction contract the statutory right to refer a dispute to adjudication.
Adjudication is intended to provide a fast, interim solution to a construction dispute, facilitating cash flow and allowing the parties to continue work on the project despite their issue. The parties can then pursue other dispute resolution methods, such as litigation, to obtain a permanent resolution. In reality, though, most businesses take the adjudicator’s decision as final and do not revisit the issue.
You can use adjudication to resolve any dispute arising out of a construction contract, such as payment disputes, extensions of time, and breaches of contract. However, the process may be inappropriate for complex issues that require extensive evidence. Our construction adjudication solicitors will advise you on the suitability of your dispute for the adjudication process.
How does Adjudication work?
The adjudication process is designed to be quick and relatively informal, with the entire process usually being finalised within 28 days. The process is far quicker than litigation, which can sometimes take years to be concluded.
When you refer a matter to adjudication, you generally follow the steps detailed below:
- Before making your referral, you must check that the issue arises out of a construction contract. You must have also brought the issue to the other party’s attention, and they must have rejected your position or ignored your correspondence.
- You then serve a Notice of Adjudication on the other party, followed by a Referral Notice containing full details of your claim.
- You and the other party choose an adjudicator and agree the terms and conditions of the adjudication.
- The other party serves their Response to your Notice of Adjudication.
- You can then reply to the other party, following which they can make additional representations.
- The adjudicator considers the case and reaches a decision. This decision is binding on the parties until they pursue the matter through another form of dispute resolution.
What are the advantages of Construction Adjudication?
Adjudication offers several distinct advantages, including the following:
- Speed – the adjudicator generally delivers their decision within 28 days, ensuring minimal disruption to the project and the parties’ cash flow.
- Cost efficiency – adjudication is a relatively inexpensive form of dispute resolution.
- Expertise – adjudicators are typically highly-qualified professionals with specialist expertise and experience in the construction industry.
- Binding decision – the adjudicator’s decision is binding on the parties, at least on an interim basis. There is very minimal scope for appeal.
- Encourages settlement – the speed with which adjudications happen means parties are encouraged to engage in meaningful settlement discussions promptly and find a commercially workable solution to the issue.
What are the disadvantages of Construction Adjudication?
Despite its many notable benefits, adjudication is not without its drawbacks. Some of the main disadvantages of the process include the following:
- Speed – the speed of the adjudication process can be a curse as well as a blessing. With often only a few days to gather and prepare their evidence, the parties have limited scope for putting forward detailed evidence and expert reports in support of their position.
- Costs risks – while adjudication is cheaper than litigation, the parties must usually pay their own legal costs, even if they win. This differs from the usual rule in litigation, which is that the losing party pays the winning party’s costs, or a percentage of them.
- No scope for appeal – as we have explained, an adjudicator’s decision is final and binding on the parties. While this provides certainty and avoids drawn-out proceedings, the losing party can often feel aggrieved when bound by a decision with which they disagree, and feel is unfair.
How can our Construction Adjudication Solicitors help?
Adjudications proceed swiftly, so you need specialist construction adjudication solicitors like ours on your side. Our team’s experience in construction adjudication is second to none, and it enables us to prepare all the necessary documentation and evidence required in a matter of days and to an incredibly high standard. As a result, you can be confident that your case is as robust and watertight as possible and has the best possible chance of success.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
