Business to business construction contracts are subject to statutory adjudication. This is not the case with business to consumer contracts, which should include express reference to adjudication for it to apply.

Before this, construction matters took up most hearings in court. The aim therefore was to create a quicker and more cost-effective method for solving disputes under construction law.

Often, the exact method for the Adjudication will be set out in the relevant contract, however, where a contract is silent on this, there is a standard method that will apply.

The process

The Referring Party (the person issuing a claim) needs to ensure that their claim is disputed or expressly not admitted before they can proceed. This encourages parties to first try and amicably solve issues between themselves.

1. Where the Referring Party must continue with their claim, they must first serve a written Notice of Adjudication. This means that they will send a letter to the other party including details of:

• Names and addresses of who is involved, identifying where the documents will be served.
• A description of what has happened.
• The contract between the parties.
• The remedy that they are seeking.

2. Within 7 days of serving this notice:

• An Adjudicator must be appointed. If the contract appoints one, then the parties will arrange their involvement. If there is no pre-agreed Adjudicator, then the parties can either agree to jointly nominate one, or the referring party can make an application to a relevant Adjudicator Nominating Body.
• The Referring Party must serve a referral notice, which details their case along with any supporting evidence. Generally, the Responding Party will submit a response within 7 days, however they can request to extend this to 14.

3. The Adjudicator then issues a timetable for the process and confirms that their decision will be reached within 28 days. At this point they take control of the case. In some circumstances, they will allow the Referring Party to make further submissions within 4-7 days of the response.

• Sometimes there will be meetings, which could be by telephone or video conference, for the benefit of the Adjudicator to gather further information.

4. The Adjudicator should reach their decision within 28 days of service of the referral notice, unless the Referring Party has agreed to extend this deadline – which they can do up to 14 days.

• The final decision of the Adjudicator is binding on the parties.
• If the award is not paid, then the successful party must apply for enforcement from the Technology and Construction Court.

Author: Latia Edwards, Legal Administrator/ Paralegal, Summerfield Browne Solicitors

DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances, and is merely a general comment on the relevant topic. If specific advice is required in connection with any of the matters covered in this article, speak to Summerfield Browne Solicitors direct.