What is Adjudication?
Adjudication is a compulsory method for resolving disputes in the construction industry, introduced in the UK in 1996 by the Housing Grants, Construction and Regeneration Act (the Construction Act). It is appropriate in cases involving cost recovery, delay and disruption. Parties to disputes in other sectors can elect to use adjudication in certain circumstances.
How does Adjudication work?
Adjudication is a mechanism where a dispute can be resolved in a predefined manner. Its benefit is primarily to ensure the smooth running of the contract under which the dispute arises and enables it to be quickly and efficiently resolved. The resolution of a dispute by adjudication is often defined in the original contract. The adjudication process begins when the dispute crystallises, and a notice of adjudication is served. This can be done by either party. An adjudicator will then be appointed. The adjudicator will receive submissions and carry out his own investigations before ultimately reaching a binding decision on the matters put before him.