Adjudication is a form of Alternate Dispute Resolution which is specific to construction disputes. The purpose behind adjudication is to resolve disputes quickly and provide a cash-flow remedy, while keeping intact working relationships, in order that construction projects can continue without delay, fallout or great cost.
Any party to a construction contract has a statutory right, under the Construction Act, to refer a dispute to adjudication at any time. Adjudication is often described as “pay first, argue later” as it is a mechanism for resolving disputes on an interim basis. The adjudicators' decision is binding until the dispute is fully determined by legal proceedings, arbitration or agreement. Adjudication typically takes 28 days from the date the dispute is referred to adjudication. It is, therefore, a powerful tool for resolving disputes quickly and it keeps construction projects on track without the need for costly and protracted court proceedings.
- Adjudication is typically used for claims relating to:
- Interim payments
- Delay and disruption of the works
- Extensions of time for completion of the works
- Defects in the works
- The final account
- Breach of contract
- Termination of a contract
- Professional negligence
Although, the framework of adjudication was not designed to resolve complex construction disputes the extent to which these are dealt with via adjudication appears to be increasing.
Myerson’s construction team understand that adjudication can be an efficient means of resolving a dispute whilst also recognising the potential pitfalls and issues that parties to this particular mechanism can face. Myerson’s specialist construction team can help you realise the best possible outcome with a strategy that is tailored to your commercial circumstances.