Adjudication in Construction Disputes: 28-Day Timetable

TL;DR

Adjudication is a fast, 28-day dispute resolution process for construction conflicts under the HGCRA. It delivers a binding decision on issues like payment, delays, or defects, keeping projects on track. Strict deadlines mean strong preparation is vital, and legal support can greatly improve your chances of success.

Introduction

Construction projects, whether residential developments, commercial builds, or infrastructure works, often involve large sums of money, tight schedules, and multiple contractual relationships. With so many moving parts, disputes are almost inevitable, from payment disagreements and delays to defective work and variations in scope. Traditionally, these disputes could only be resolved through lengthy litigation or arbitration, but the construction industry needed a quicker, more cost-effective solution.

That is where adjudication comes in. Introduced under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA), adjudication provides a fast-track process for resolving construction disputes, typically within 28 days. It allows projects to continue with minimal disruption while providing a binding, enforceable decision.

This article explains how adjudication works, the strict timetable parties must follow, and what contractors, subcontractors, and employers need to know to protect their position.

What Is Adjudication in Construction Law?

Adjudication is a statutory dispute resolution procedure designed specifically for the construction sector. It gives any party to a construction contract the right to refer a dispute to an independent adjudicator at any time. The key features are:

• Speed: Most disputes are resolved within 28 days from referral.
• Flexibility: It encompasses a wide range of disputes, including payment, time extensions, variations, and defects.
• Binding effect: The adjudicator’s decision is binding unless and until overturned by litigation, arbitration, or settlement.

Because of its speed and simplicity, adjudication is often referred to as “pay now, argue later.” This means parties must comply with the decision immediately, even if they intend to challenge it later.

When Can Adjudication Be Used?

The right to adjudicate arises under any “construction contract” as defined in the HGCRA. This includes contracts for:

• Construction, alteration, repair, or maintenance of buildings and structures.
• Engineering and infrastructure works.
• Professional services such as design, project management, or surveying.

Parties may also agree to use adjudication voluntarily in contracts that fall outside the statutory definition. Most standard-form contracts, such as JCT and NEC, include adjudication clauses.

You can also read: Arbitration vs Litigation in Construction Disputes: Which is Best?

Common Types of Disputes Referred to Adjudication

Adjudication is most commonly used for payment-related disputes, but it can cover a broad range of issues, including:

• Interim or final payment claims – disagreements over the amount due.
• Valuation of variations – disputes about additional work and costs.
• Delays and extensions of time – disagreements over project timelines.
• Defective work – claims over quality or compliance with specifications.
• Breach of contract – including failure to perform contractual obligations.

Because of its speed, adjudication is particularly useful where cash flow is at stake — a frequent challenge in construction projects.

The 28-Day Timetable Explained

The defining feature of adjudication is its tight timetable. The HGCRA and the Scheme for Construction Contracts 1998 set out a strict process, designed to resolve disputes quickly and keep projects moving.

Here is how the process typically unfolds:

Notice of Adjudication (Day 0)

The process begins when one party, known as the referring party, serves a Notice of Adjudication. This document sets out:

• The nature of the dispute.
• The issues to be decided.
• The remedy sought.

The notice must be served in accordance with the contract’s adjudication clause or the statutory Scheme. Accuracy is essential. Errors can lead to jurisdictional challenges later in the process.

Appointment of the Adjudicator (Within 7 Days of the Notice)

Once the notice is served, the referring party must appoint an adjudicator within seven days. This can be done by agreement between the parties or through a nominating body (e.g., RICS, RIBA, or TeCSA) if they cannot agree.

The adjudicator must confirm their appointment and jurisdiction before the process continues.

Referral Notice (Within 7 Days of the Notice)

Within seven days of serving the notice, the referring party must submit a Referral Notice to the adjudicator and the other party. This document expands on the dispute, sets out the legal and factual basis of the claim, and includes all supporting evidence (such as contracts, payment notices, or expert reports).

Failure to submit the referral on time usually ends the adjudication.

You should know about: Termination of Construction Contracts: Legal Rights and Consequences

Responding Party’s Defence (Typically Within 7 Days of Referral)

Once the Referral Notice is served, the responding party (the other side to the dispute) has an opportunity to reply. This is often called the Response and must address all points raised in the referral, provide counter-evidence, and may include jurisdictional objections if they believe the adjudicator lacks authority.

Although the Scheme does not set a strict deadline for the response, it is usually submitted within 7 days to allow the adjudicator time to consider it before the decision deadline.

Adjudicator’s Powers to Seek Further Submissions

The adjudicator has broad discretion to manage the process. They can:

• Request further written submissions.
• Hold a meeting or hearing (though this is rare).
• Ask for additional documents or evidence.
• Appoint their own expert.

These steps must be taken within the tight timetable and are usually aimed at clarifying complex issues quickly.

Decision Deadline (Within 28 Days of Referral)

The adjudicator must issue a decision within 28 days of receiving the Referral Notice. This deadline can only be extended:

• By 14 days if the referring party agrees.
• For a longer period if both parties agree.
  

The decision must address all issues raised and is temporarily binding, meaning it must be complied with immediately, but can later be challenged in court or arbitration.

Enforcement of Adjudicator’s Decisions

Adjudicator’s decisions are binding on the parties unless and until overturned by subsequent proceedings. If a party refuses to comply, the other party can apply to the Technology and Construction Court (TCC) for summary judgment.

The TCC enforces adjudicators’ decisions swiftly, usually within weeks, reflecting the industry’s emphasis on maintaining cash flow. It will only refuse enforcement in limited circumstances, such as where the adjudicator acted outside their jurisdiction or breached natural justice.

Advantages of Adjudication for Construction Disputes

Adjudication is now the most widely used dispute resolution method in UK construction, and for good reason:

• Speed: Most disputes are resolved in under a month.
• Cost-effectiveness: Shorter timescales mean lower legal costs.
• Continuity: Projects can proceed without long delays.
• Enforceability: Decisions are binding and quickly enforceable.
• Specialisation: Adjudicators often have industry expertise.

For SMEs and subcontractors, adjudication is particularly valuable because it provides a practical remedy against delayed payments — one of the biggest risks in construction projects.

Common Pitfalls and How to Avoid Them

Despite its benefits, adjudication is not without risk. Common mistakes include:

• Poorly drafted notices: Errors in the Notice of Adjudication can undermine the entire process.
• Inadequate evidence: Submitting incomplete or disorganised evidence weakens a party’s case.
• Jurisdictional challenges: Failing to follow procedural requirements gives the responding party grounds to challenge the adjudicator’s authority.
• Lack of legal advice: The fast pace leaves little time to correct mistakes, so early legal input is critical.

Careful preparation and expert advice significantly improve the chances of success.

Let Our Experts Help You

Construction disputes can derail projects, damage business relationships, and put cash flow at risk. Adjudication offers a swift, cost-effective way to resolve conflicts and keep work moving, but strict deadlines mean mistakes can be costly. At Civil Litigation Lawyers, we help contractors, subcontractors, and employers prepare strong adjudication cases, respond effectively, and enforce decisions when necessary. Contact us today to discuss your dispute and get clear legal guidance before you start the adjudication process.