Adjudication is a statutory, fast track method of resolving construction disputes in which an independent adjudicator considers the evidence and submissions of the parties, uses their own knowledge and enquiries, and reaches a decision. The decision is binding on the parties unless and until the dispute is finally determined by arbitration, litigation or agreement between them.
In the UK, parties to a construction contract have a right to refer a dispute to adjudication at any time under the Housing Grants, Construction and Regeneration Act 1996. Where the contract does not comply with the Act, the Scheme for Construction Contracts applies. For the QS, adjudication is most often used for disputes over payment, the valuation of variations, extensions of time and loss and expense.
- The adjudicator must normally reach a decision within 28 days of the referral, which can be extended by agreement.
- Decisions are usually enforced quickly by the courts, even if the losing party believes the adjudicator was wrong.
Related terms: arbitration, dispute resolution, notice of adjudication, Scheme for Construction Contracts.
