What is Adjudication?
Under the Housing Grants, Construction and Regeneration Act, either party has the right to refer a dispute to adjudication at any time.
Construction operations carried out under construction contracts are defined widely such that there are limited works and/or services relating to construction contracts that are not covered by the legislation.
Adjudication provides a very quick timetable as a decision is required to be reached, usually within 28 days from the date the dispute is referred to the adjudicator. The decision is binding on the parties, unless overturned in arbitration or litigation.
Resort to the courts is readily available and, except in rare cases where the adjudicator has exceeded his/her jurisdiction, or failed to comply with the rules of natural justice, the courts are quick to enforce a decision against a recalcitrant party.
Not surprisingly, adjudication has quickly become the pre-eminent dispute resolution process in the United Kingdom construction industry.