Adjudication in the United Kingdom

“The [Housing Grants, Construction and Regeneration] Act provides that a party to a construction contract is to have the right to refer a dispute arising under the contract for adjudication under a procedure, complying with its requirement, ¹ which are that the contract must:

enable a party to give notice at any time of their intention to refer a dispute to adjudication; (b) provide a timetable with the object of securing the appointment of the Adjudicator and referral of the dispute to the Adjudicator within seven days of such notice;

require the Adjudicator to reach a decision within 28 days of referral, or such longer period as is agreed by the parties after the dispute has been referred;

allow the Adjudicator to extend the period of 28 days by up to 14 days, with the consent of the party by whom the dispute was referred;

impose a duty on the Adjudicator to act impartially; and

enable the Adjudicator to take the initiative in ascertaining the facts and the law. ²

The contract must also provide that the decision of the Adjudicator is binding until the dispute is finally determined by legal proceedings, by arbitration (if the contract provides for arbitration, or the parties otherwise agree to arbitration), or by agreement, although the parties may agree to accept the decision of the Adjudicator as finally determining the dispute.” ³