What is adjudication?
Posted on: 12 November, 2026
Three decades after adjudication was introduced to provide a speedy resolution to construction disputes, referrals continue to rise. Associate Professor James Beckwith, Programme Leader for LLM Construction Law, examines how the process works, its benefits and limitations, and why it remains an important tool for the industry.
In 1994, Latham made a recommendation related to resolving disputes if they do arise, being “providing for speedy dispute resolution if any conflict arises, by a pre-determined impartial adjudicator/referee/expert”. This recommendation was enshrined in legislation, being the Housing Grants Construction and Regeneration Act 1996 (HGCRA), where in Section 108 of the Act “A party to a construction contract has the right to refer a dispute arising under the contract for adjudication” (HGCRA, 1996).
In the three decades since the Latham Report, referrals of construction disputes to adjudication have not decreased. Far from it. Research by Nazzini and Godhe, undertaken at King’s College London, provides evidence of this. Between May 1999 and April 2000, the second year after the HGCRA came into force, there were 1,309 adjudication referrals. Although numbers fluctuated, falling to 1,064 between May 2010 and April 2011, they subsequently increased, reaching a record 2,264 referrals between May 2023 and April 2024. The research shows an overall upward trend in adjudication referrals.
So, what is construction adjudication?
Core features of adjudication in the UK Construction industry include:
1. Speed to decision
Adjudication is a quick process. From a dispute being referred to the adjudicator they must normally reach their decision within 28 days.
2. Temporarily binding
The adjudicator’s decision is binding upon the parties; however, the parties can take this forward to be determined in either arbitration, should they have a valid arbitral clause in their contract, or legal proceedings through the courts or come to a final and binding decision. Often, decisions are taken as binding and form a final determination between the parties.
3. Document-based approach
Adjudication as a process is very different to legal proceedings, where significant documents and bundles are submitted to the courts prior to a hearing often, adjudications are undertaken on a ‘documents-only basis’. Parties present their case through their ‘Referral Notice’ and include any supporting information such as details of payments, invoices, payment notices and so on. These are submitted to the adjudicator, who may ask for some clarification before reaching their decision. The adjudicator is empowered to be proactive in ascertaining the facts of the case.
4. Statutory vs contractual adjudication
An adjudication process can be triggered through various routes. The parties may have agreed in their contract that they will refer any matters to adjudication. This is common where there are facilities such as adjudication boards within contracts. However, in the UK, any party undertaking ‘construction operations’ under a contract has the right to refer ‘any dispute’ to adjudication at ‘any time’. This is a statutory provision, and the parties cannot contract out of it. Likewise, the parties cannot include barriers to justice within their contract that would stifle the adjudication process.
When is adjudication used?
Adjudication can be used to resolve a wide range of disputes. While securing payment is one of its primary purposes, it can also be used to address other issues, including:
- Payment disputes: Allegations of non-payment, improper withholding of funds, or disagreements over interim valuations.
- Variations and scope changes: Arguments over whether a specific task constitutes extra work requiring additional compensation.
- Extensions of time (EOT): Disagreements regarding project delays and who bears the financial burden of prolonged site presence.
- Defective workmanship: Assessing whether completed work meets contract specifications and calculating the cost of rectification.
The adjudication process
Normally, disputes will be crystallised prior to the adjudication process. This is where a clear difference will have arisen between the parties. Importantly, you cannot ‘crystalise’ a dispute by notifying adjudication. You must have a difference already in place before you issue your notice of adjudication.
- Notice of intent: The claiming party serves a formal Notice of Adjudication to the defending party, outlining the nature of the dispute and the remedy sought.
- Appointment of the adjudicator: An independent adjudicator with specific expertise (such as a construction lawyer, quantity surveyor, or engineer) is selected, either by mutual agreement or through an Adjudicator Nominating Body (ANB).
- The referral notice: Within 7 days of appointment, the Referring Party submits their comprehensive case, complete with all supporting evidence and documentation.
- The response: The responding party is given a brief window (usually 7 to 14 days) to submit their defence and counter-arguments.
- The decision: The adjudicator reviews the submissions, applies the relevant law and contract terms, and issues a written decision, typically within 28 days of the initial referral.
Advantages
Whilst judication has its critics, there are some clear benefits to the process, and it has been widely taken up in the construction and legal sectors. It provides a clear mechanism to resolve payment disputes and, as intended, can help unlock cash flow within a contractual chain.
It is seen as a quick and cost-effective alternative to traditional litigation. It can protect relationships. Whilst relationships may have soured through adjudication, an early adjudication setting out principles that are in dispute on a long-term contract can act as what is called a ‘circuit breaker’ to define the relationship and set rules for the parties to adhere to in administering their contracts moving forward.
Finally, adjudicators aren’t all lawyers. Adjudicators are drawn from a pool of construction and legal practitioners and have a background in industry. Therefore, they are able to understand the commercial realities of the parties as well as the complexities around construction.
Ambush tactics and rough justice
I mentioned that there are criticisms, and one such criticism is that of ‘ambush tactics’. This is where a referring party spends a long time preparing their documentation, which is served upon the responding party, who has only a limited time to respond. There is a lack of equity in the time scales for preparation and response of a defence.
A further criticism is that of adjudication being ‘rough justice’ in that the 28-day time limit is strict and in the UK, a statutory requirement. This means that adjudicators are under pressure to provide a decision within this time scale, even if they are faced with complicated and difficult items to review.
Finally, the adjudicator has only limited powers to award costs. The adjudicator can allocate their own fees to one of the parties, typically following success. However, the award of the party’s own legal costs is not within the empowerment of the adjudicator.
Conclusion
So, construction adjudication has taken root within the industry over the last three decades, and the number of adjudications is increasing. The process prioritises speed, and a ready workable solution to differences between parties over complex legal arguments, which can be later, played out either through arbitration or litigation.
The process is designed to provide a fast but imperfect decision that keeps projects and businesses moving, which is clearly preferable to spending significant sums of money pursuing court action, only to secure a successful award after your company has already entered liquidation.
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