Adjudication is a short-term and relatively cost-effective alternative dispute
resolution (“ADR”) method, in which a third party called the Adjudicator
hears the arguments given by conflicting parties and determines a
temporarily binding solution called a “Decision”, ordinarily within a 28-day
period (this period can be extended unilaterally by the Referring Party by a
further 14 days and thereafter further with the agreement of both parties).
If the Decision is found unsatisfactory by a party, the Decision may only be challenged on
very
limited grounds otherwise in the event of non-compliance the Decision may be summarily
enforced
in court by either party since the Decision is binding upon the parties until resolved by
litigation, or
as the case may be, arbitration.
Why choose adjudication?
- Under most construction contracts, adjudication is a statutory right as a form of construction
ADR
- Decisions are temporarily binding upon the parties save in limited circumstances and remain
binding until the whole dispute is referred to litigation or arbitration in the event of a binding
arbitration agreement
The format
The referring party will begin by serving a notice of its intention to refer a conflict to an adjudication
process. The notice will provide a brief description of the contract, the dispute, and desired
outcome.
The disputing parties should then appoint an Adjudicator within seven days of the referral. The
Adjudicator will make a decision within 28 days (this period can be extended unilaterally by the
Referring Party by a further 14 days and thereafter further with the agreement of both parties)
Party representation
Davies and Davies are highly-experienced in guiding clients through the adjudication process,
whether pursuing or defending, and for making informed and fair decisions.
Adjudication offers a fast construction ADR process, at a relatively low cost compared to the cost
of litigation. Each party is normally expected to pay their own costs regardless of the final outcome,
although the Adjudicator may allocate total fees between the parties as is deemed suitable.