Regulated by RICS
How Much Does Construction Adjudication Cost?
A Practical Guide to Adjudication Fees and Expenses
One of the first questions parties ask when considering adjudication is:
"How much is this going to cost?"
The honest answer is that every dispute is different.
The cost of construction adjudication can vary considerably depending on the complexity of the dispute, the value of the claim, the amount of documentation involved, and the professionals appointed to assist.
However, understanding the various costs involved can help parties make informed decisions and budget appropriately before commencing proceedings.
This guide explains the typical costs associated with construction adjudication and the factors which influence them.
Why Understanding Adjudication Costs Matters
Adjudication is often promoted as a quicker and more cost-effective alternative to litigation.
Whilst this is generally true, adjudication still requires:
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Careful preparation
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Professional input
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Detailed submissions
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Compliance with strict timetables
Understanding the likely costs at the outset enables parties to:
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Assess commercial viability - i.e. is the likely return worth the outlay?
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Budget appropriately
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Manage risk
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Consider settlement opportunities
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Decide whether professional representation is required
What Costs Are Involved in Adjudication?
There are typically four categories of cost:
1. Adjudicator's Fees
2. Party Representative Fees
3. Expert Fees
4. Internal Business Costs
Let's look at each in turn.
Adjudicator's Fees
The adjudicator is an independent decision-maker appointed to determine the dispute; an adjudicator must be paid by the parties for the work they do.
Most adjudicators charge an hourly rate, however it may be the case that they will also charge a daily rate (more likely in the case of if a meeting or site visit is arranged) in some circumstances, and also they may charge for expenses they have incurred, in particular, if they appoint experts or legal advisors themselves.
The total fee will therefore largely depend upon the time they spend on the appointment. This will be influenced by such matters as:
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Complexity of the dispute
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Value of the claim
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Number of submissions
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Volume of evidence
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Time spent reviewing documents
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Whether there have been any meetings or site visits
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Whether experts or legal advisors have been appointed.
Generally speaking, adjudicator fees can vary significantly depending upon the dispute and the individual appointed. Research* carried out in 2024 found that typically, Adjudicator's charge between £300 - £350 per hour, and their total fees for a complete appointment are in the region of £12,000 - £14,000. (*Nazzini, R & Godhe, A, 2024 Construction Adjudication in the United Kingdom: Tracing trends and guiding reform. King’s College London).
For smaller disputes, fees may be relatively modest. It is worth noting that if your dispute is for a claim of £100,000 or less, there is a process called the 'CIC LVD MAP' which is an adjudication process designed for low-value disputes; in this process, the Adjudicator's fees are capped on a sliding scale (proportionate to the value of the dispute) of between £2,000 and £5,000. Therefore, If you have a dispute which is of a lower value, it is well worth considering requesting this process - you should enquire with the adjudicator nominating body when you approach them.
For larger and more complex disputes involving substantial documentation, adjudicator fees can become a significant part of the overall cost.
Who Pays the Adjudicator?
The adjudicator will decide how their fees are to be allocated.
In most cases, the losing party pays most or all of the adjudicator's fees. Sometimes, the adjudicator may decide to apportion the fees equally between the parties. It generally depends upon the success of the parties in the dispute. However, it should be noted that the parties are jointly and severally liable for payment of the adjudicator's fees until they are paid.
Party Representative Fees
Many parties appoint a specialist representative to prepare and manage the adjudication.
A representative may assist with:
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Assessing the dispute
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Drafting submissions
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Collating / Preparing evidence
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Managing the timetable
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Developing legal and contractual arguments
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Responding to jurisdictional challenges
Representation is not mandatory - it is possible to self-represent. However, many parties consider professional assistance worthwhile due to the compressed timescales involved, and the level of expertise often required.
If you wish to learn more about the likely cost of a party representative in adjudication, please feel free to contact us; one of our directors will be happy to discuss a fee estimate with you.
Solicitors or Construction Professionals?
To explore the issue of party representative costs a little deeper, it is worth bearing in mind that Adjudication representatives generally fall into two categories:
Solicitors
Construction solicitors often provide adjudication services and legal advice throughout the process. There are many large (national and multi-national) solicitors firms who specialise in construction matters, or have a specialist department for construction matters.
Construction Professionals
Many parties appoint experienced:
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Quantity Surveyors
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Claims Consultants
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Engineers
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Contract Specialists
who possess extensive adjudication experience and specialist construction knowledge, as well as construction law qualifications and understanding.
The most appropriate choice will depend upon the nature of the dispute and the issues involved.
Expert Witness Fees
Some, but not all, disputes require (or can benefit from) independent expert evidence.
Examples include:
Delay Experts
To analyse programme delays and critical path issues.
Quantum Experts
To assess valuations, variations, and financial entitlement.
Technical Experts
To address design or workmanship issues.
Legal Experts
In particularly complex matters, specialist legal input may be required.
Not every adjudication requires expert evidence. In our experience, at Sum ADR, we have rarely felt it necessary to bring in experts of this nature when we are representing a party. Our in-house experience as construction professionals means that we are capable of putting forward a strong position on quantum or delay matters. Furthermore, our construction law qualifications and contractual experience means that we are able to deal with the majority of contractual or legal issues (where necessary, we have good contacts with expert construction barristers who can assist).
However, where expert evidence is necessary, it can represent a substantial additional cost.
Internal Business Costs
One category often overlooked is the internal cost to the business itself.
Adjudication demands time and resources.
Management teams may need to:
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Review documents
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Attend meetings
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Prepare witness statements
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Gather evidence
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Assist representatives
For some businesses, the internal management time involved can be significant.
What Factors Affect Adjudication Costs?
Several variables will influence overall expenditure:
Value of the Dispute
Generally speaking:
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Higher-value disputes often require more evidence.
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Larger claims often involve more detailed analysis.
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More money at stake usually means more extensive submissions.
Complexity
A straightforward payment dispute (i.e. a "smash & grab" adjudication) will often cost substantially less than:
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Large final account disputes
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Delay claims
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NEC compensation event disputes
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Multi-issue adjudications
Volume of Documentation
Construction projects generate substantial records.
The greater the volume of relevant:
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Emails
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Drawings
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Payment documents
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Meeting minutes
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Programmes
the greater the preparation effort that may be required.
Number of Issues
A dispute concerning a single unpaid invoice / application is very different from a dispute involving:
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Variations
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Delays
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Defects
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Contra charges
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Final account valuation
The more issues involved, the greater the likely cost.
Is Adjudication Cheaper Than Litigation?
In the vast majority of cases, yes.
Court proceedings frequently involve:
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Lengthy disclosure exercises
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Multiple witness statements
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Expert evidence
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Procedural hearings
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Trial preparation
and often take many months or years to conclude.
Adjudication is designed to provide a much faster outcome.
Although the process can still involve significant costs, it is considerably more economical than full litigation, generally speaking.
Can Adjudication Costs Be Recovered?
This is one of the most common misconceptions.
Many parties assume that if they win, they will automatically recover all of their legal or representation costs (similar to how costs work in litigation).
That is not the case, conventionally, in adjudication.
In most adjudications:
Adjudicator's Fees
Are allocated by the adjudicator; most adjudicator's follow the legal maxim that "costs follow the event", which in essence means that the losing party has to pay the adjudicator's fees.
Representation (professional / legal) Fees
Generally, these remain the responsibility of each party unless the parties reach a specific agreement otherwise.
Parties should therefore carefully consider the likely costs before commencing proceedings. A successful party may not have to pay the adjudicator's fees, but at the very least, the costs which a party will spend on its representatives should be in proportion to the value of the outcome of the dispute.
How Can Costs Be Controlled?
There are several practical steps which can help manage expenditure:
Prepare Early
The more organised the documentation, the more efficient the process will be.
Focus on the Key Issues
Avoid putting forward or engaging in unnecessary arguments or irrelevant material. Identify the fundamental issues and stick to them.
Keep Good Records
Clear records often reduce time spent preparing evidence.
Seek Early Advice
Early advice can help identify strengths, weaknesses, and commercial risks before significant costs are incurred.
Consider Settlement Opportunities
Not every dispute requires a full adjudication hearing; negotiation is arguably the cheapest form of dispute resolution, and a commercial settlement may sometimes represent the better outcome.
Frequently Asked Questions
Is adjudication expensive?
It depends upon the complexity and value of the dispute. However, adjudication is generally more cost-effective than litigation. Adjudication doesn't need to be an 'expensive' process - in our experience, the cost of taking such a course of resolution should be proportionate to the value of the dispute.
Do I need a solicitor?
No. Many parties appoint specialist construction professionals with significant adjudication experience.
Can I recover my adjudication costs if I win?
Usually each party bears its own professional costs unless there is agreement between the parties allowing recovery.
Who pays the adjudicator?
The adjudicator will normally determine how their fees are allocated between the parties. Conventionally, the losing party pays the adjudicator's fees.
Are low-value adjudication procedures available?
In some circumstances, yes. Parties should consider whether simplified procedures may be appropriate for lower-value claims (see the 'CIC LVD MAP' process for example).
Is adjudication worthwhile for smaller disputes?
Often, yes. The answer depends upon the value of the claim, the likely recovery, and the proportionality of the costs involved.
How Can Sum ADR Help?
Understanding the likely costs of adjudication is an important part of deciding whether to commence proceedings.
At Sum ADR, we regularly advise contractors, subcontractors, employers, and developers on:
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The merits of potential claims
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Likely adjudication costs
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Commercial strategy
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Adjudication representation
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Contractual disputes
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Payment disputes
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Final account disputes
Our aim is always to provide practical, commercially focused advice so that clients can make informed decisions before sizeable costs are incurred.
Need advice on a potential adjudication?
Contact Sum ADR for an initial discussion with one of our adjudication specialists.