ABSTRACT

All 'construction contracts' as defined in the Construction Act must contain an adjudication procedure. Adjudication is a statutory legal procedure by which any party, and particularly a Subcontractor, to a construction contract has the right to have a dispute decided by an adjudicator. It is intended to be a quick process and it can be cost-effective when handled properly. It is normally used by Subcontractors to obtain payment, but most types of dispute can be adjudicated. However, some disputes are not suitable for adjudication, and some Contractors will not pay even when the adjudicator's decision goes against them. The contract may contain provisions and rules for adjudication. It may incorporate a set of rules by reference, or it may be silent on the issue. Just like everything else in construction, some Contractors will bend the rules in their favour. There are a number of organisations which have published their own Adjudication Rules and/or act as Adjudicator Nominating Bodies.