Adjudication

What is adjudication?

Adjudication is a process by which a party to a construction contract can refer a dispute arising out of the contract to an impartial third party for a decision.

The right to refer is a statutory one and applies to all construction contracts.

What are the benefits of adjudication?

• A party can refer a dispute to adjudication at any time.
• An adjudicator will usually give a decision within 28 days of referral.
• The decision of the adjudicator is binding until the dispute is finally determined either by legal proceedings or arbitration, although the parties can agree to accept the decision of the adjudicator as finally determining the dispute.
• The costs associated with adjudication are usually significantly less than with litigation or arbitration.
• Should payment not be received following the adjudicator’s decision, the Technology and Construction Court can, using the summary judgment procedure, promptly enforce the decisions of an adjudicator.

How does adjudication work?

• One party serves notice of their intention to refer a dispute to adjudication upon the other party. This notice sets out the nature of the dispute and the parties involved, details of where and when the dispute has arisen, the remedies sought and the details of the parties to the contract.
• The identity of the adjudicator is then considered. The contract may provide details of the identity or an appointment may be sought by the referring party from an adjudicator nominating body.
• Once appointed, the adjudicator shall decide on the procedure to be followed in the adjudication together with a timetable. The adjudicator may request copies of documentation, require written / oral submissions from the parties, carry out a site visit or issue other directions relating to the conduct of the adjudication.
• The adjudicator will then reach a decision not later than 28 days after the date of the referral notice or, if the referring party agrees, not later than 42 days after the referral notice.

For further details and advice please contact:

Mark Whittell

Tel: 0845 165 5252

mark.whittell@cobbetts.com

Nicholas Carr

Tel: 0845 404 1520

nicholas.carr@cobbetts.com

Keith Mills

Tel: 0845 404 2426

keith.mills@cobbetts.com

The content of this briefing note is merely informative and should not be relied upon as a substitute for legal advice.

Copyright 2007 - All Rights Reserved - March 2007