The Construction Contracts Act 2013 provides a straightforward and efficient way to resolve payment disputes that arise in construction projects. Through adjudication, a process introduced by the Act, parties can resolve disputes at any stage of the contract. This method offers a quick, cost-effective solution to help unlock payments that may be delayed. One of the major advantages of adjudication is its flexibility—it can be initiated at any time, and a decision is usually given within 28 days after the claim is submitted. This speed makes it particularly appealing for those seeking fast financial resolutions.

Adjudication serves as a practical alternative to traditional dispute resolution methods like arbitration, litigation, or conciliation, which can often take months or even years. By using adjudication, parties can receive a temporary yet binding resolution, allowing payments to continue and the project to move forward without unnecessary delays.

Scope of Adjudication

Adjudication is applicable to most types of construction contracts under the Act. These contracts—referred to as “construction contracts”—are broadly defined, covering main contracts, subcontracts, and even professional appointments. This inclusiveness ensures that adjudication is available whether the contract is formalized in writing or not.

Moreover, the process can be applied to a wide range of contract types, benefiting all parties involved in a construction project—from the main contractor to subcontractors and service providers. This broad applicability means disputes can be efficiently resolved without lengthy interruptions, keeping projects on track.

Step-by-Step Guide to Adjudication

1. Serving Notice of Intention to Refer
   Adjudication begins when the Referring Party, usually the party claiming payment, serves a Notice of Intention to Refer Payment Dispute for Adjudication. This document outlines the nature of the dispute and is a crucial step. The Notice must clearly define the scope of the dispute, as it sets the limits of the adjudicator’s authority. Any mistakes in the Notice can lead to challenges later, complicating or delaying the process.

2. Appointment of an Adjudicator
   After the Notice has been served, the next step is appointing an adjudicator. The parties involved can agree on an adjudicator, but if no agreement is reached, the Construction Contracts Adjudication Service (CCAS) will appoint one from their panel. The chosen adjudicator will be impartial and experienced, ensuring a fair and effective decision-making process.

3. Submissions and Timetable
   Once the adjudicator is appointed, both parties must submit their documents according to a formal timetable. The Referring Party has 7 days to submit their case, known as the Referral, which outlines the facts, contractual provisions, and legal arguments. This submission triggers the 28-day deadline for the adjudicator to deliver a decision. The Responding Party then has 14 days to submit their response. Depending on the complexity of the case, additional submissions such as replies or rejoinders may follow. Adjudications are usually based on documents, but the adjudicator may request a hearing or site visit if necessary.

4. The Adjudicator’s Decision
   The adjudicator is required to issue a decision within 28 days of receiving the Referral, although this period can be extended by 14 days if both parties agree. The decision is binding in the interim, meaning it must be followed immediately, even if one party later decides to pursue arbitration or litigation. If the decision is not honored, there is a fast-track enforcement procedure available in the High Court to ensure compliance.

Cost Considerations

The cost of adjudication varies depending on the dispute’s complexity and the amount of documentation involved. However, even in more involved cases, adjudication is generally far more affordable than traditional methods like arbitration. Each party is responsible for their own legal costs, but the adjudicator’s fees are usually borne by the losing party. That said, adjudicators often require both parties to be jointly responsible for their fees, meaning the winning party may still need to contribute if the losing side fails to pay.

Pre-Adjudication Checklist

Before initiating adjudication, it’s important to consider the following:

• Is it a payment dispute? Adjudication under the Act only applies to payment disputes. Other types of claims, like those related to time extensions, may not qualify.
• Do you have a strong case? Assess the strength of your claim based on the contract’s terms to avoid unnecessary costs or delays.
• Are your documents in order? Strong documentation—such as invoices, correspondence, and schedules—is essential to prove your claim.
• Do you have adequate resources? Adjudication is a fast-paced process. Ensure your team is prepared to manage the workload within the short timeframe.
• Do you need specialist advice? Seeking expert legal or technical advice can help you develop a strong strategy and avoid mistakes during the process.

Conclusion

Adjudication under the Construction Contracts Act 2013 provides a fast, efficient way to resolve payment disputes in the construction industry. Its accessibility, speed, and binding interim decisions make it a valuable tool for contractors, subcontractors, and professionals looking for quick, cost-effective solutions to payment-related issues.