Construction Adjudication

If you’re looking for a more cost-effective, legal way to resolve your debt claims we can assist. At Lovetts, we are committed to helping your business find a time and cost effective way around commercial litigation. In this article we are going to have a look into Construction Adjudication, the process, costs involved and how you can use this form of Alternative Dispute Resolutions (ADR) to settle your dispute.

What is Adjudication?

Construction adjudication is a process whereby an impartial third party, known as an adjudicator, is appointed to make a binding decision concerning a construction dispute. The adjudicator will consider the evidence and arguments presented by both parties and will make a decision based on what they believe is fair and reasonable in the circumstances.

The construction adjudication process is often used where there is a disagreement over the terms of a contract, the quality of workmanship, or the payment of fees. It can also be used to resolve disputes between neighbours over boundary walls or other shared structural elements.

Adjudication is generally considered to be a quicker and cheaper alternative to litigation, as it avoids the need for costly and time-consuming court proceedings. It also has the advantage of being binding on both parties, meaning that the decision of the adjudicator must be complied with.

Construction disputes are often adjudicated to determine who is liable for damages. In many cases, the adjudicator will review the evidence and decide based on the facts of the case. This can be a very effective way to resolve construction disputes, as it allows both parties to present their case before an impartial third party.

If you are involved in a construction dispute which you believe could benefit from adjudication, then you can speak to our litigation team at Lovetts Solicitors who specialize in this area of law for advice on how to proceed.

The process of Adjudication

The process of resolving construction disputes with adjudication relative to debt recovery is as follows:

  1. The parties to the construction contract agree to submit their dispute to adjudication.
  2. An adjudicator is appointed by the parties or by an independent body such as Royal Institution of Chartered Surveyors (RICS).
  3. The adjudicator hears both sides of the argument and makes a decision on the matter in dispute. This decision is binding on both parties unless and until it is overturned by a court or arbitration tribunal.
  4. If one party does not comply with the adjudicator’s decision, the other party can enforce proceedings through the courts.

How long does the process take?

The process begins when the Referring Party serves the Responding Party with a Notice of Adjudication. After serving the Notice of Adjudication, the Referring Party must serve its Referral within 7 days of serving the notice. The adjudicator has 28 days to decide after the Referral is served by the Referring Party. (This period can be extended by 14 days if the Referring Party agrees).

The time required to decide adjudication is significantly shorter than in court, which is consistent with the overarching goal of improving cash flow. Whereas a party referring a dispute to adjudication may receive an adjudicator’s decision within 4-6 weeks, if that same dispute is referred to the courts, the referring party may reasonably expect the courts to render a decision within 9 to 12 months, or possibly longer.

The costs involved

The adjudication process can be costly, depending on the severity of the debt recovery dispute. If the dispute is minor, then the cost of adjudication may be minimal. However, if the dispute is more severe, then the cost of adjudication can be quite high. There are a few factors that will affect the cost of adjudication, such as:

How can Lovetts assist you?

If you are involved in a construction dispute involving debt, our experienced solicitors at Lovetts Solicitors can help. We are a debt recovery solicitors with a wealth of experience in dealing with all types of construction disputes, from payment disputes and defects to professional negligence claims.

Part of our debt recovery adjudication process includes- Fixed Fee Advice, Unlimited Legal Advice, Alternative Dispute Resolution, and Advice on Payment Terms. You can learn more about these debt recovery services via our website.

Contact Us Now.

21 July 2023