Construction Adjudication

Construction adjudication is an essential mechanism designed to resolve construction industry disputes swiftly and efficiently, ensuring that projects can proceed with minimal disruption. This alternative dispute resolution process is a statutory right under the Construction Act, providing a fast-track route to addressing disagreements that may arise from a construction contract.

JMW offers support and legal advice to ensure fair and effective resolution of construction disputes, and can act as your dedicated construction adjudication solicitor to assist you with this process. Whether you are a contractor, subcontractor or developer, our specialised services are tailored to meet the unique demands of the construction sector.

Adjudication in construction contracts is a specialised area requiring thorough understanding and strategic foresight. The process mandates strict compliance with procedural rules and timelines, making the role of experienced construction adjudication lawyers invaluable. At JMW, we guide our clients through the adjudication process and provide robust representation, ensuring your interests are effectively communicated and defended.

To learn more about how we can help you, contact our team of construction adjudication solicitors on 0345 872 6666, or fill out an online contact form to arrange a time for us to call you back.

Our Construction Adjudication Services

At JMW, we will help you get the most out of adjudication to resolve disputes pertaining to a construction contract, whether you are dealing with issues such as payment discrepancies, project delays, or quality concerns.

We advise clients through the adjudication process in the following ways:

• Evaluating suitability for adjudication: we will evaluate your case against statutory requirements and practical considerations to ascertain whether adjudication is the most effective option for you.
• Beginning the adjudication process: we will support you in creating and serving the initial notice of adjudication, laying a solid foundation for your case.
• Case preparation and representation: building a compelling case within the tight adjudication timelines demands precision and expertise. Our team ensures that your evidence, legal arguments, and documentation are prepared and persuasively presented.
• Challenging the adjudicator’s decision: should there be grounds to challenge the outcome, JMW will guide you through the process, assessing the merits of your case and advising on the most strategic course of action.

Engaging in construction adjudication may seem like an involved process, but with JMW’s expertise and support, you will be well-equipped to use this valuable tool to resolve construction disputes effectively.

What is Adjudication in Construction, and When is it Needed?

Adjudication in construction is a specialist form of dispute resolution designed to provide a swift, interim solution to disputes arising from construction activities. It has become an integral part of the dispute resolution process within the construction industry due to its efficiency and cost-effectiveness, and most construction contracts include adjudication provisions in accordance with the Housing Grants, Construction and Regeneration Act 1996, commonly referred to as the Construction Act.

Adjudication is typically employed in situations where quick dispute resolution is essential to the continuation of a construction project. It is most commonly applied to disputes relating to:

• Payment issues: including delayed payments, underpayments, or disputes over the final account.
• Quality of work: concerns over whether the work completed meets the contractual standards or specifications.
• Delays: disputes over extensions of time, liquidated damages, or other delay-related issues.
• Contract Interpretation: disagreements on how contract terms should be interpreted and applied.

The process is designed to be accessible to all parties involved in construction contracts, irrespective of their size or the nature of their business. It provides a statutory right to a rapid, legally binding decision, allowing construction projects to proceed while disputes are resolved.

The main appeal of adjudication lies in its ability to provide a quick resolution, which is particularly beneficial in the construction industry, where time is often of the essence, and prolonged disputes can result in significant financial losses and project delays.

What is the Construction Adjudication Process?

The construction adjudication process is structured to ensure swift and fair resolution of disputes within the construction sector. It involves several key stages that parties need to navigate effectively:

• Notice of Adjudication: the process begins with the aggrieved party (the referring party) issuing a Notice of Adjudication to the other party (the responding party). This notice outlines the nature of the dispute and the desired remedy. It formally initiates the adjudication process and sets the timeline in motion.
• Appointment of the adjudicator: once the notice of adjudication is issued, an adjudicator must be appointed. This can be done either through an agreement between the parties or, more commonly, via an adjudicator nominating body. The appointed adjudicator has the responsibility to act impartially throughout the process.
• Referral notice: after the adjudicator has been appointed, the referring party has a limited time (usually seven days from issuing the notice of adjudication) to send the referral notice. This document provides a comprehensive statement of the case, including relevant documents and evidence supporting the claim.
• Response and counterclaims: the responding party is then given an opportunity to reply to the referral notice. This response should include any defence, counterclaims, or additional evidence that the responding party wishes to introduce. The adjudicator may also allow further exchanges of information if necessary to clarify the issues at hand.
• Adjudicator's review and site visits: the adjudicator reviews all submitted materials and may request further information, arrange meetings, or conduct site visits if necessary to fully understand the dispute's context and specifics.
• Decision: the adjudicator must decide within 28 days of receiving the referral notice, although this period can be extended by up to 14 days with the agreement of the referring party, or longer with the agreement of both parties. The decision, based on the information provided and the terms of the contract, should resolve all issues in dispute and dictate any financial settlements or actions that must be taken.
• Enforcement: the adjudicator’s decision is binding and must be complied with immediately, unless the parties agree otherwise or the decision is successfully challenged in court. If a party does not comply with the adjudicator's decision, the other party may seek enforcement through the courts.

At JMW, our construction adjudication solicitors are experts in guiding clients through this process, ensuring that all necessary documents are prepared accurately and deadlines are met, thereby maximising the chances of a favourable resolution.

What are the Advantages and Disadvantages of Construction Adjudication?

Construction adjudication offers a unique framework for resolving disputes within the construction industry. It presents numerous advantages, especially compared to traditional litigation, but also has certain limitations. Understanding these can help parties make informed decisions about engaging in the adjudication process.

Advantages of construction adjudication:

• Speed: one of the most significant benefits is the quick resolution of disputes, typically within 28 days. This rapid process helps minimise project delays and associated costs.
• Cost-effectiveness: adjudication is generally less expensive than court litigation due to the shorter timeframe and less formal procedures.
• Expertise: adjudicators are usually experts in construction law and the construction industry, ensuring that decisions are informed by a deep understanding of the sector's complexities.
• Flexibility: the process is less formal than court proceedings, allowing for more flexible handling of cases and solutions tailored to the construction context.
• Confidentiality: unlike court cases, adjudication proceedings are private, helping to protect company reputations and sensitive information.
• Binding decisions: the adjudicator's decision is binding until revised by arbitration, litigation or agreement, providing an immediate solution while allowing for a more permanent resolution later.

Disadvantages of construction adjudication:

• Interim rulings: while the decision is binding, it is not the final resolution, meaning parties may need to go through further dispute resolution processes for a definitive resolution.
• Limited scope for appeal: once the ruling has been issued, there are very few grounds on which to challenge an adjudicator’s decision.
• Tight timelines: the fast pace of the adjudication process can be challenging, especially for parties without legal representation.
• Adversarial structure: the adversarial nature of the adjudication process can place strain on business relationships, albeit to a much lesser extent than litigation.

By weighing these advantages and disadvantages, parties involved in construction disputes can better decide whether adjudication is the right path for them. At JMW, our construction adjudication lawyers are dedicated to providing clients with clear, pragmatic advice to manage the challenges and leverage the benefits of construction adjudication.

Why Choose JMW?

JMW is a leader in providing strategic legal advice for the construction sector. Our commitment to excellence and client success is evidenced by our recognition in prestigious legal directories such as the Legal 500 and Chambers & Partners, marking us as one of the UK's top law firms. Our solicitors understand the complexities of construction adjudication and are committed to securing the best outcomes for our clients.

Our approach is to demystify the legal process, translating complex legal principles into clear, actionable advice. Whether you require hands-on guidance throughout the adjudication process or prefer advisory support from a distance, our team adapts to meet your needs while ensuring discretion and professionalism. Our goal is to make the legal process as seamless and straightforward as possible, allowing you to focus on your construction projects without unnecessary legal entanglements.

We provide advice with a pragmatic and commercially focused perspective, always keeping the broader business objectives in view. No matter what you are seeking to achieve from the dispute resolution process, we will work tirelessly to help you accomplish these goals.