Regulated by RICS
What is Construction Adjudication?
A Complete Guide for Contractors, Subcontractors and Employers
Construction projects are complex, and unfortunately, disputes are common. Whether the disagreement concerns payment, delays, variations, extensions of time, defects, or final account valuations, unresolved disputes can place significant pressure on a project and the businesses involved.
Construction adjudication provides a fast and effective method of resolving many construction disputes without the time and expense associated with court proceedings.
This guide explains what construction adjudication is, how the process works, how long it takes, and what parties should consider before commencing or responding to an adjudication.
What Is Construction Adjudication?
Construction adjudication - or statutory construction adjudication - is a statutory dispute resolution process available to parties engaged in construction contracts, generally speaking.
Introduced by the Housing Grants, Construction and Regeneration Act 1996 (commonly referred to as the Construction Act), adjudication was created to provide the construction industry with a quick mechanism for resolving disputes and maintaining cash flow.
Unlike litigation, which can take months or even years to reach a conclusion, adjudication is designed to produce a binding decision within a matter of weeks.
The process is often described as:
"Pay now, argue later."
This reflects the courts' general approach of enforcing adjudicators' decisions, even where one party disagrees with the outcome.
An adjudicator is appointed to consider the evidence presented by the parties and reach a decision. The adjudicator acts independently and must consider the parties' submissions fairly and impartially. An adjudicator is generally appointed via an adjudicator nominating body, such as the RICS, and may come from a professional or legal background.
Why Was Adjudication Introduced?
Historically, construction disputes could take many months or years to resolve through litigation or arbitration. This often created significant cash flow difficulties for contractors and subcontractors who were waiting to be paid.
The Construction Act introduced adjudication (as well as statutory minimum payment provisions) to:
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Improve cash flow within the construction industry
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Provide a rapid method of dispute resolution
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Reduce the need for lengthy litigation
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Enable projects to continue whilst disputes are resolved
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Encourage commercial certainty
Today, adjudication is widely accepted across the industry and is often the preferred method of resolving construction disputes.
Who Can Use Construction Adjudication?
Adjudication is available to many parties operating within the construction industry.
These include:
Contractors
Main contractors frequently use adjudication to resolve disputes concerning payment, variations, extensions of time, and final accounts.
Subcontractors
Subcontractors often rely upon adjudication to recover unpaid sums, challenge deductions, or resolve valuation disputes.
Employers and Developers
Employers may use adjudication where disputes arise concerning defective works, delays, overpayments, or contractual obligations.
Consultants
Certain professional appointments may include provisions allowing disputes to be referred to adjudication.; this may include referring disputes regarding allegations of professional negligence.
Every dispute should be considered on its own facts, and it is always advisable to obtain professional advice before commencing proceedings.
What Types of Disputes Can Be Adjudicated?
Adjudication can be used to resolve a wide variety of disputes.
Common examples include:
Payment Disputes
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Interim payment applications
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Payment notices
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Pay less notices
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Outstanding invoices
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Retentions
Valuation Disputes
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Variations
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Final account valuations
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Dayworks
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Measurement disputes
Delay and Time-Related Claims
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Extensions of time
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Delay damages
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Delay-related issues, i.e. Concurrent delay
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Programme disputes
Loss and Expense Claims
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Prolongation costs
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Disruption claims
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Additional preliminaries
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Productivity issues
NEC Contract Disputes
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Compensation events
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Defined Cost issues
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Programme acceptance issues
Defects and Quality Issues
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Defective workmanship
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Remedial cost recovery
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Specification compliance
Contract Interpretation
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Meaning of contractual clauses
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Scope disputes
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Risk allocation
The Construction Adjudication Process
The adjudication process follows a relatively strict timetable. The following outlines the process as set out in 'The Scheme', and from our experience generally:
Step 1: Notice of Adjudication
The referring party begins the process by serving a Notice of Adjudication (or Notice of intention to refer a dispute to Adjudication, to give it is longer title).
Under the Scheme rules (which are most generally used), the notice must identify:
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The parties
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The dispute (in brief, you don't need to set out full details at this stage)
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Details of where and when the dispute has arisen
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The redress sought (i.e. what you want the outcome to be)
This document is critical because it establishes the scope of the dispute being referred, and the extent of the adjudicator's jurisdiction. Getting professional advice on the drafting of a Notice of Adjudication is recommended.
Step 2: Appointment of the Adjudicator
An adjudicator must be appointed following the service of the Notice of Adjudication (not before).
The parties may:
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Agree upon an adjudicator directly (this might be stated in your contract), or
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Apply to a nominating body such as the RICS to make an appointment.
The adjudicator must be independent and impartial. The appointment process needs to be carried out quickly following the service of the Notice of Adjudication; we would recommend that the application to the nominating body is made immediately following the service of the Notice of Adjudication, to avoid any delays. As a further point, we would note that it is quite common at around this time in the process that the Responding Party will attempt to challenge the jurisdiction of the adjudicator - i.e. to try and make the Adjudicator resign, and thus frustrate the proceedings.
Step 3: Referral Notice
Not later than seven days from the date of the Notice of Adjudication, the referring party serves its Referral Notice (its statement of case, essentially).
This typically includes:
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Detailed written submissions, supported by appendices including,
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Contract documents
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Correspondence
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Valuations (Payment Applications, Payment Notices, etc.)
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Other Supporting records
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Witness evidence, if applicable.
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Any legal authority (i.e. case law) on which your case may rely.
The Referral Notice forms the foundation of the claim and should be prepared carefully, and thoroughly. When the Adjudicator receives the Referral Notice, they are then formally engaged to act; they will confirm the 28-day timetable at this point. Note that the day of receipt of the Referral is day "0" in this timetable.
Step 4: Response
The responding party then will be given an opportunity to submit its Response, ordinarily within a period of 7 to 14 days, depending upon the complexity of the dispute.
This Response document sets out:
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The defence
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Counterarguments
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Relevant evidence
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Alternative valuations
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Jurisdictional challenges, where applicable (and to the extent not already made).
Step 5: Further Submissions
Depending on the adjudicator's directions (i.e. if the adjudicator considers it necessary), the parties may exchange additional submissions such as:
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The Reply (from the Referring Party);
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The Rejoinder (from the Responding Party);
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The Surrejoinder (from the Referring Party),
Not every adjudication includes these stages.
Step 6: Adjudicator's Decision
Following review of the submissions and evidence, the adjudicator issues a written decision; this must be issued to the Parties within 28 days of the Referral Notice (see 'Step 3' above), unless the Adjudicator is granted an extension (which typically may be up to an extra 14 days), The decision will include 'reasons' (i.e. a detailed explanation of why the adjudicator decided what they did) if requested to by one of the parties.
The decision should answer the 'Redress Sought' in the Notice of Adjudication, which may include orders requiring:
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Correction of valuations
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Payment of money
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Extension of time entitlement
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Determination of contractual rights
Adjudicators will also decide how their fees should be allocated between the parties. Ordinarily, the losing party pays the adjudicator's fees.
How Long Does Construction Adjudication Take?
One of the principal advantages of adjudication is speed.
An important point to note however, which is often misunderstood, is that although Adjudication is often referred to as being a "28-day" process, this 28-day period only starts once the Referral Notice is served. There is of course time required before this, in particular the time required to serve the Notice of Adjudication and seek the appointment of an Adjudicator. Generally speaking, a typical adjudication might follow a timetable similar to the following:
Day 1 (/ Pre-adjudication)
Notice of Adjudication served.
Day 2 (/ Pre-adjudication)
Application to Adjudicator Nominating Body (i.e. RICS) is made.
Day 4 (/ Pre-adjudication)
Adjudicator appointed, and sends his terms to the Parties
Day 5 (/ Adjudication Day "0")
Referral Notice served.
Day 12 (/ Adjudication Day "7")
Response received.
Day 33 (/ Adjudication Day "28")
Decision issued.
More complex disputes may require more submissions and an extension of time for the Decision, but adjudication is still significantly faster than most dispute resolution procedures.
How Much Does Construction Adjudication Cost?
The cost of an adjudication depends upon several factors, including:
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Size of the dispute
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Complexity of issues
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Volume of documentation
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Number of submissions required
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Whether expert evidence is involved
Potential costs which you should consider may include:
Adjudicator's Fees
The adjudicator is usually paid on a time-cost basis; 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).
It is worth noting however, 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.
Party Representative Fees
Many parties appoint specialist adjudication representatives to prepare and manage the claim. Generally speaking, adjudication representatives are either (a) solicitors firms, or (b) construction professionals (quantity surveyors, engineers, architects) who are trained in construction law and have experience of construction claims, disputes and adjudication.
Expert Fees
Certain disputes require expert evidence, such as delay analysis or detailed valuation exercises, or in some cases, expert legal advice from specialist construction barristers. The use of, or need for, experts is largely dependent upon what the representative considers is required. For example, a solicitor representing a party in a dispute regarding the valuation of variations is more likely to look to appoint a quantum (QS) expert, than a party representative who is themselves a chartered quantity surveyor (and therefore possesses those skills).
Although every dispute is different, adjudication is often considerably more cost-effective than litigation.
For more information on the costs of adjudication, read our article 'How much does Construction Adjudication Cost?
Advantages of Construction Adjudication
Speed
Decisions are generally obtained within weeks rather than months or years.
Low cost
The costs are, by comparison, often much lower than taking matters to court.
Enforceability
The courts generally enforce adjudicators' decisions.
Industry Expertise
Many adjudicators possess substantial construction experience and technical knowledge.
Reduced Formality
Adjudication is generally less formal than court proceedings.
Cash Flow Protection
The process supports the Construction Act's objective of maintaining cash flow throughout the supply chain.
Potential Disadvantages of Adjudication
Whilst adjudication is , in the main, extremely effective, parties should also be aware of certain challenges.
Tight Timetables
Parties may have limited time to gather evidence and prepare submissions (in particular, the Responding Party).
Intensive Process
The process can be demanding (and stressful) due to compressed deadlines.
Interim Nature
In some circumstances, disputes may subsequently be revisited through arbitration or litigation.
Significant Documentation
Construction disputes often involve substantial volumes of contractual and commercial records.
Adjudicator error (/quality of the decision-making)
Sometimes, unfortunately, the Adjudicator may make an error in their decision which may mean that they don't find for your side, or such errors might give grounds for the losing party to claim that the decision is 'unenforceable' (challengeable via Part 8 proceedings); this is something which we have seen argued more often following the court's ruling in 'Hutton Construction Ltd v Wilson Properties (London) Ltd [2017] EWHC 517 (TCC)'.
Professional advice can help parties navigate these challenges effectively.
Frequently Asked Questions
Is an adjudicator's decision legally binding?
Yes. Adjudicators' decisions are generally binding unless and until overturned through arbitration, litigation, or agreement between the parties.
Can I refuse to participate in adjudication?
A responding party may choose not to engage, but the adjudication will usually proceed regardless. You need to consider the reasons why you may or may not wish to participate, and weigh up whether it is your better interests to participate but reserve your position (say, as to jurisdiction).
Do I need a solicitor?
No. Many parties appoint specialist adjudication representatives - like Sum ADR - with extensive construction and contractual expertise.
Can adjudication be used for payment disputes?
Yes. Payment disputes are among the most common issues referred to adjudication.
Can adjudication be used under NEC contracts?
Yes. NEC contracts (see Option W2) regularly give rise to adjudication referrals involving compensation events, programmes, and payment matters.
Can more than one dispute be referred?
This depends upon the circumstances and whether the matters constitute a single dispute. Generally speaking, under the Scheme provisions, an adjudicator can only act in relation to one dispute, unless the parties agree otherwise. However, there is often misunderstanding about what a single "dispute" actually means, and the courts have stated that a single dispute may have several sub-issues and/or components to it.
How quickly can I start an adjudication?
If a dispute has 'crystallised' you generally have the right to refer that dispute to adjudication immediately. In many cases, proceedings can be commenced quickly thereafter, once the Notice of Adjudication and Referral Notice are prepared.
Can adjudication be used for final account disputes?
Yes. Final account disputes are frequently referred to adjudication.
What happens if the losing party does not pay?
The successful party may apply to the courts to enforce the adjudicator's decision.
Is adjudication confidential?
Yes. Adjudication is generally conducted privately between the parties.
Why Appoint an Experienced Adjudication Representative?
Adjudication is often won or lost on preparation, and knowledge of how to present and argue a case. That knowledge is only gained through academic training and real world experience of having advocated numerous cases previously.
An experienced representative can assist with:
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Assessing the merits of a claim
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Preparing submissions
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Identifying evidential gaps
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Managing procedural requirements
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Developing effective strategies
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Maximising recovery prospects
Given the compressed timetable involved, early preparation is often critical to achieving a successful outcome.
About Sum ADR
Sum ADR Limited specialises in construction adjudication, dispute resolution, quantity surveying, and contract advice.
Our directors are accredited working adjudicators with extensive experience acting for contractors, subcontractors, employers, and developers in a wide range of construction disputes. We are construction professionals first and foremost, and we understand your issues.
Whether you are considering commencing an adjudication or responding to one, our team can provide practical, commercially focused support tailored to your circumstances.