Appointing an Adjudicator
The Adjudicating Procedure
Adjudication was set up in the construction industry as a way to settle disputes as quickly as possible without the parties having to resort to costly and lengthy litigation procedures to settle their differences.
Adjudication in construction contracts is now a contractual or statutory procedure for a fast, interim dispute resolution. It is provided by a third party independent adjudicator selected by the parties in dispute.
One a dispute has been adjudicated on the decisions are binding unless and or until they are revised by arbitration or litigation.
The dispute can not be subject to adjudication again.
There is no right of appeal and limited right to resist enforcement. Award of legal costs is at the discretion of the adjudicator unless this is excluded by the terms of the contract. Based on decision and written information received from both parties, the whole process can take up to 28 days and the decisions are binding.
If parties to a construction contract do not agree an adjudication procedure, then one is imposed by statute (see the Housing Grants, Construction and Regeneration Act 1996 Part II Section 108 and the Local Democracy, Economic Development and Construction Act 2009 Part 8, which took effect in England and Wales in October 2011 and in Scotland in November 2011).
Contractual adjudication procedures must comply with Section 108 of the Housing Grants, Construction and Regeneration Act.
The adjudicator is either named in the contract, agreed by the parties or appointed by a nominating body, usually named in the contract.